Wednesday, October 31, 2007

Gold $808.50/ounce

Gold hitting a 27-year high doesn't seem to be peaking the interest of the gold bugs. From Mark Hulbert; "the latest readings of the Hulbert Gold Newsletter Sentiment Index (HGNSI), which reflects the average recommended gold market exposure among a subset of short-term gold timing newsletters followed by the Hulbert Financial Digest. As of Tuesday night, the HGNSI stood at 51.8%" the all-time high being 90%. "This past February, when gold bullion was trading between $650 and $660, the HGNSI stood at 75%. So, over an eight-month period in which bullion has risen nearly 20%, the HGNSI has decreased by some 23 percentage points."
"That's a remarkable divergence for two data series that normally rise and fall more or less in tandem. And it bodes well for the gold market over the next several weeks."

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