Gold sentiment remains quite tepid, despite the fact that the yellow metal just yesterday reached a new all-time record high.
The latest Hulbert Gold Newsletter Sentiment Index (HGNSI) – which was calculated prior to today’s gold sell-off – came in at 40.3%, far below levels historically associated with intermediate term tops in the price of gold.
The HGNSI measures market timers’ recommended exposure to the yellow metal, and is far below its multi-month high of 67% – reached in late July when the price of gold traded near $1,615 per ounce.
According to Mark Hulbert, founder of the HGNSI, the tepid sentiment is a bullish sign from a contrarian perspective:
“What has played out in recent weeks is the bullish scenario that I outlined nearly two months ago: In my July 19 column, I wrote that it would be bullish for the yellow metal if, in the wake of subsequent gold market weakness, ‘traders were to quickly run for the exits. That would suggest that there remains an underlying climate of skittishness about gold, which would allow the wall of worry to be quickly rebuilt.’..That wall of worry appears today to be quite robust.”
Klondex Mines Advances Flagship Gold Deposit
* The outsourcing of mining, processing and exploration activities, under the close supervision of Klondex's experienced Nevada team, enables the Company to pursue a substantial base of activity while at the same time limiting its capital investment.
* Klondex has three drill rigs working on site. A reverse circulation (RC) rig and a diamond core rig have commenced initial drilling and a directional drill rig started their program this past weekend.
