Jordan Roy-Byrne discusses how sentiment will drive gold higher

The Daily Gold, Released on 1/20/23 (Recorded on 1/19/23)

There are two key observations in this video. When coming out of a cyclical bear market, a strong rebound that carries sentiment to a bullish extreme is not a sell signal. In fact, it tends to be bullish as it can confirm a new bull market. After a multi-year bear, investors are so underinvested in that market that it takes a while for bullish sentiment to be a real negative for the market. Elsewhere, during major breakouts in Gold in the past few decades, sentiment was fairly bullish when these breakouts (2005, 2007, 2009, 2019) occurred. If Gold registers bullish sentiment extremes and the price has rallied to $2000 or $2050, it is not a sell signal nor precludes a breakout from happening.

Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.

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