The sentiment towards gold remains at very low readings. It currently stands at 26 (on a scale from 0 to 100). Readings below 30 indicate extreme pessimism.
Intuitively, this seems to make sense, because precious metals prices and miners are beaten down in the last 3 years. Admittedly, this is one of the worst corrections in the last decades (since gold started trading freely), and there is almost no sign of life in gold and silver since the price crash in April and June of 2013.
But under the hood we can observe another picture. Case in point: the price of gold in several other major currencies is showing very bullish setups.
The first case is euro gold, as seen on the first chart. From a chart perspective, the 1050 level has been a very important price level (see the green dotted line). Why? It was major resistance up until the summer of 2012. That is when a very sharp rally started. Early 2013, euro gold retraced its gains, and, initially, old resistance became support. That gave away quite fast, and since then 1050 has been acting as major resistance … up until earlier this year.
The good news for gold bulls is that 1050 has turned into support. Note how that was confirmed recently when euro gold bounced off that price level (green circle). The chart looks very constructive to say the least.
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