Sentiment Says Gold and Silver are about to Turn
We are in the end of June/early July timeframe where I was looking for gold and silver to bottom. On the 6th of June I was quoted as saying, “I would like to see the dollar rally and gold/silver drop over the next several weeks. I think we will get a tradable low in the precious metals mining sector at some point during late June, early July. The sector has a fairly predictable seasonal pattern and there is nothing I’m seeing that convinces me that this pattern won’t play out again this year.”
The dollar may have bottomed lately and sentiment towards gold and silver as measured by the DSI has dropped to a value of 10 into the “gag me with a spoon zone” where long suffering investors barf up their shares just in time to miss the next rally. Anything below a sentiment reading of 10 most often marks lows. With any more declines this week, the DSI will dip even lower increasing the probability of a tradable low.
And Sunday the 9th is a full moon. According to Tom McClellan, “Gold prices tend to see turning points according to at least two independent schedules that I have thus far deciphered. One is the schedule of full moons… I encountered the full moon behavior while undertaking an effort to disprove that any such relationship does or even could exist. That effort failed.”