12 October 2015
Posted in
Special research
The latest sentix data reveals that investors rediscover gold as an attractive investment. The sentix Strategic Bias depicts an eleven weeks running upwards trend. The odds for precious metals, especially for gold, to remain bullish in the next weeks are favourable.
The current readings for the sentix Strategic Bias for Gold (the indicator captures investors’ six month expectations for gold) continues its strong upwards movement. The sentix strategic Bias for Gold commenced a rapid recovery movement, after heavily plummeting at the beginning of July’s sell-off (refer to Chart below). This indicator shows its frontrunning attribute at pivotal points, as demonstrated at the end of 2013 and 2014, through the fact that investors have to shift their fundamental opinions first. Subsequently, gold orders are placed therefore putting upward pressure on gold prices. Hence, an improving sentix Strategic Bias implies positive price signals.
The positions of „smart money“ (large speculators) as measured by the Commitment of Traders (CoT) data, as presented by the CFTC, confirms that investors indeed are starting to purchase gold. Such newly awaken interest in the commodity gold is consistent with the seasonal pattern for November/December. Therefore, we belief if gold significantly breaks the technically important 1170 USD/oz. resistance area, gold is a solid investment opportunity.
sentix Strategic Bias, investors‘ 6-month expectations, is polled on a weekly basis since 2001 as part of the sentix Global Investor Survey. It reflects the strategic view of market participants as well as their basic convictions and perceptions of value for a given market. As this indicator represents investors’ general willingness to buy or sell it should not be interpreted as a contrarian signal. Rather it is usually leading the market by several weeks.
The current sentix Global Investor Survey was conducted from October 08 to October 10, 2015. 1,002 individual and
institutional investors took part in it.