Tuesday, February 19, 2013

Pessimism Towards Gold Reigns in 2013

Pessimism towards gold without a doubt reigns in 2013 (chart).  MOVB(E), a volatility-base momentum indicator, has generated its lowest reading since 2001.  This suggests emotional capitulation underway.  As long as the fundamentals driving gold remain in tact (they do), emotional capitulations setup major trend inflections.

Chart:  Gold ETF (GLD)


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