Gold Bullish Sentiment Plunges - ETF Daily News etfdailynews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etfdailynews.com Daily Mail and Mail on Sunday newspapers.
Gold Approaching Important Level
While Q2 started off strong, it was a rough finish to the quarter for the price of gold (GLD), with the metal dipping back into negative territory, down just over 4% year-to-date. This weak performance following the June Federal Reserve Meeting, where we saw the discussion of an earlier rate hike than initially planned. While this certainly wasn’t a positive development for the metal, the $100/oz decrease in the gold price looks to be an overreaction, and it’s certainly accomplished one thing: killing the majority of the bulls in the trade.
As of last week, the bullish sentiment was down more than 4500 basis points from May levels, sliding from 70% bulls to just 17% bulls on Tuesday of last week. This suggests that the scales have been tilted in favor of the bulls again, with sentiment so poor that further weakness should push this indicator onto a buy signal.
Gold: Bulls Need To Hold Here - ETF Daily News etfdailynews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etfdailynews.com Daily Mail and Mail on Sunday newspapers.
Gold Sentiment Depressed Despite Recent Rally
It’s been a volatile month for the market thus far, with the Nasdaq-100 (QQQ) down over 5% and the S&P-500 (SPY) giving up nearly half of its April advance. Fortunately, this weakness in the major market averages has not spilled over to the precious metals complex, where gold (GLD) is now massively outperforming the Nasdaq on a short-term basis, up more than 7% thus far in Q2. However, this impressive rally has not translated to much of an improvement in sentiment, with bullish sentiment still near multi-year lows for the metal. This suggests that this rally in gold has much further to go, and one of the best ways to play this rally looks to be Kirkland Lake Gold (KL), trading at a near double-digit free cash flow yield with 55% plus all-in sustaining cost margins. Let’s take a closer look below:
Gold Starting to Show Some Signs of Bottoming etfdailynews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etfdailynews.com Daily Mail and Mail on Sunday newspapers.