Gold’s powerful post-stock-panic upleg hasn’t enjoyed buying support from the gold-futures speculators. These influential traders often drive and even dominate major gold-price trends. But they’ve been subtly selling into gold’s sharp recent rally. Their dogged skepticism is actually very bullish for gold in coming months. Gold-futures speculators are amassing big gold-futures-buying firepower that will be unleashed.
The maelstrom of extreme fear spawned by mid-March’s stock panic even briefly sucked in gold. It had surged to a 7.1-year secular high of $1675 during the initial weeks of that heavy stock-market selling. But once that went panic-grade, which is major stock indexes plummeting 20%+ in 2 weeks or less, even gold was dumped in the frantic dash for cash. Similar to prior panics, gold plunged 12.1% in just 8 trading days.