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Market timers increasing exposure to gold, boosting price

Published 12/29/2016, 02:13 PM
Updated 12/29/2016, 02:20 PM
© Reuters.  Short-term gains seen as unusual.

Investing.com - Traders who use market timing strategies appear to be behind the price increase for gold this week.

The price of the precious metal was up 1.37% by mid-day today, an increase of $15.60, to $1156.50.

According to a leading analyst, the typical short-term gold timer has reacted to overall declining prices
for the yellow metal over the last month by becoming even more bullish.

That’s the exact opposite of how traders traditionally respond to declines, and indicates that there may be potent undertow of optimism in the gold-timing world.

So-called "tradable bottoms" generally come with skeptical investor attitudes.

According to the Hulbert Gold Newsletter Sentiment Index, or (HGNSI), however, the gold exposure level among regular gold investors has grown.

This average currently stands at negative 4.0%, contrasted with a reading of negative 18.0% a month ago
when gold bullion stood at just short of $1,200 an ounce.

Analysis: in the aftermath of a $60+ drop in gold’s price, the average gold timer has increased her exposure level by 14% points.

Silver, Copper

The price of silver was also up on Thursday, at $16.19 per ounce. That was an increase of 15 cents per ounce, or about 0.95%.

The price of copper, however, today was trading lower at about 1:30 p.m. Central.

Latest comments

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