Hulbert Gold Sentiment Update

As per Mark Hulbert’s HGNSI, Gold market timers are now more short-term bullish.

I base these comments on current gold market sentiment, as indicated by the average recommended gold market exposure among a subset of short-term gold market timers tracked by the Hulbert Financial Digest (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). This sentiment benchmark currently stands at 44.9%.

As recently as the beginning of this month, in contrast, the HGNSI stood at just 9.2%. So while the rally in recent weeks started out climbing a very strong wall of worry, in the process that wall has become markedly less robust.

To be sure, bullish sentiment is not yet so high as to be triggering immediate short-term sell signals. The HGNSI remains well below the 61% level to which it rose in January, or the 68% level to which it rose last December. And since gold bullion on both of those prior occasions was well below where it stands now, we know that a wall of worry still exists out there to some extent.

His indicator has room to move higher but it certainly has gained significantly during Gold’s V-shaped recovery from $1150 to nearly $1230.

[ad#LT Gold Report]