Doc is with us today to discuss the general trend in US markets and gold. We continue to see a general rollover in US markets but are we setting up for a nice pop in November? The monthly chart is not showing us this to be the case.
As for gold we are slowly grinding up since the big washout earlier this month. There is a comment below regarding sentiment for gold (especially in terms of stocks) that we take a look at.
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Here is the comment we discuss focusing on sentiment in the junior gold ETF… [CORRECTION: The interview quoted below was recorded on September 30th. I read a morning email from MarketWatch that had this interview quoted but it made no reference to when the interview was recorded. I assumed it was more recent. My apologies.]
“The gold tug-of-war has extended into October. The metal is down 3.6% this month, however, it’s still up 20% year to date.
But for some, it’s not time to buy the current dip yet. Jesse Felder, founder and president of Felder Investment Research, told Real Vision TV in an interview that he’s still waiting on a sizeable bust up in gold prices. “I’ve got a big position in two gold miners, and to go back to an oversize position, I’d love to see a great shake-out,” he says.
“I was looking yesterday on StockTwits, and the junior gold miner ETF had a 97% bulls and 3% bears. That’s a pretty crowded trade,” he says. “I’m keeping my core position because we’re in a bull market, but I’d really love to see a washout of sentiment.”
Felder says such a gold meltdown could be triggered by more problems cropping up for European banking, which would trigger a dollar pile-in, and help “wash off this excess bullishness” in gold currently.
Long term, he’s a bull, says Felder: “We’ve got massive money printing around the world, negative interest rates. I can’t imagine a more bullish scenario for gold over the long term,” he says.“