An excerpt from an article submitted to ZeroHedge.....
Gold has come under pressure from heavy liquidation by hedge funds and banks on the COMEX this week. The unusual and often 'not for profit' nature of the selling, at the same time every day this week, has again led to suspicions of market manipulation.
Short sellers, technical and momentum traders have the upper hand and are pressing their advantage with momentum and sentiment on their side. Nervous longs are being stopped out through stop loss orders and concerns regarding the clear downward short term trend.
Gold market sentiment is the most negative that we have seen in recent years. The ratio of sell orders to buy orders was the highest it has ever been in recent days. Yesterday, for the first time ever we had all sell orders for gold and silver coins, bars and certificates and not one buy order.
This shows that many retail buyers are very nervous about the outlook for gold and concerned about the risk of further price falls.
There has been more selling from retail clients today and we are getting a sense of fear from clients that they have not had in the last ten years. Interestingly, long term buyers of gold and silver bullion, particularly high net worth individuals were evident this morning and flows from this demographic look set to continue.
Fear in the gold market and retail buyers selling their gold suggest that we are very likely to close to a bottom.
Although the article is confirming evidence (which can be dangerous to your financial health), I thought I would post it in regards to the timing model update I provide yesterday, found here. Essentially, yesterday's downward spike in gold marked the first time in month the timing models indicated a strong buy on gold/precious metal stocks on the overblown worry that the Fed would slow monetary easing.
Gold has come under pressure from heavy liquidation by hedge funds and banks on the COMEX this week. The unusual and often 'not for profit' nature of the selling, at the same time every day this week, has again led to suspicions of market manipulation.
Short sellers, technical and momentum traders have the upper hand and are pressing their advantage with momentum and sentiment on their side. Nervous longs are being stopped out through stop loss orders and concerns regarding the clear downward short term trend.
Gold market sentiment is the most negative that we have seen in recent years. The ratio of sell orders to buy orders was the highest it has ever been in recent days. Yesterday, for the first time ever we had all sell orders for gold and silver coins, bars and certificates and not one buy order.
This shows that many retail buyers are very nervous about the outlook for gold and concerned about the risk of further price falls.
There has been more selling from retail clients today and we are getting a sense of fear from clients that they have not had in the last ten years. Interestingly, long term buyers of gold and silver bullion, particularly high net worth individuals were evident this morning and flows from this demographic look set to continue.
Fear in the gold market and retail buyers selling their gold suggest that we are very likely to close to a bottom.
Although the article is confirming evidence (which can be dangerous to your financial health), I thought I would post it in regards to the timing model update I provide yesterday, found here. Essentially, yesterday's downward spike in gold marked the first time in month the timing models indicated a strong buy on gold/precious metal stocks on the overblown worry that the Fed would slow monetary easing.
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