According to Mark Hulbert:
-
1. Most of the gold-timing newsletters are either out of the gold market or even short gold.
2. His Hulbert Gold Newsletter Sentiment Index (HGNSI), which reflects newsletter exposure to gold, is down to 14.3%.
3. As recently as April 25 the index was at 57.1% even though gold was about $3 an ounce lower than it is now.
4. On February 16 the HGNSI was at 75% with gold at $665. Today gold is at $685. So even though gold is $20 an ounce higher than it was in February, bullish sentiment is dramatically lower. Highly unusual.
5. Since contrarians believe that when the bullish consensus goes lower — especially while prices are moving higher — it is quite a bullish sign.
