Gold Surges Above $1,430 But Gold May Be Set For Even Bigger Gains

kingworldnews.com

The short squeeze in the gold market continued after the Comex close. Gold has now surged above $1,430 but it may be set for even bigger gains.

Golden Regime
 
July 3 (King World News) – A portion of a very important update on the gold market from Jason Goepfert at SentimenTrader:  “Investors behave differently in bull markets than they do in bear markets. That’s a rare heuristic that tends to hold true across markets, and across time.

No Market Reflects That More Than Gold
 
Regime changes are infrequent, and among the most challenging aspects of being involved in markets, since what worked recently simply stops. Extreme becomes more extreme. Right now, no market reflects that challenge more than gold…

In recent days, the Optimism Index (Optix) on the metal has climbed into the mid-60s. Over the past 7 years, the Backtest Engine shows that a reading this high led to further gains in gold only 29% of the time. That’s assuming we’re in the same environment as we’ve been in for 7 years, and there are good arguments why that might not be the case.

If it’s not, then we should expect the Optix to move into the 70-80 area to indicate temporary excess.

In Gold Bull Markets Optimism Readings Increase

18.7% Gain For Gold 12 Months Later
 
King World News note:  The chart and table below shows significant gains in the gold market one year after this signal was given in 1976, 1978, 1986, and 2006. Gold averaged a staggering 18.7% gain 12 months later!

Gold Averaged A Staggering 18.7% Gain In 12 Months!