Quoting the Market Watch piece:
Fortunately for the gold market, the HGNSI is not at overheated levels right now. It currently stands at just 40.3%, which means that the average gold timer is allocating 60% of his gold portfolio to cash. That’s amazing, given that gold bullion is back to within shouting distance of its all-time high set a couple of months ago.
The usual caveats apply, of course. Sentiment is not the only indicator that makes the gold market tick. And even when contrarian analysis is right, it works over the shorter term, not the longer term.