Probing Gold’s Bottom
As 2020 is wrapping up, investors are trying to narrow down the target for gold’s bottom in the coming weeks. And as the yellow metal is experiencing what appears to be its worst month in the past four years, the Gold Miners Bullish Percent Index ($BPGDM) once again provides us with some key insights into reading the bearish signals for the precious metals.Q3 2020 hedge fund letters, conferences and moreBPGDM Shows Overbought ReadingLast week, the BPGDM showed the highest possible overbought reading.**The excessive bullishness was present at the 2016 top as well and it didn’t cause the situati...
Precious Metals Now and Then: A Comparison
When making decisions regarding the gold mining stocks sector, some will choose to follow price actions while others will use indicator tools. The Gold Miners Bullish Percent Index (BPGDM) is one such tool, essentially being a gauge of overbought and oversold conditions for the gold mining sector with readings plotted on a range between 0 and 100. Anything below 30 suggests oversold conditions while readings above 70 indicate an overbought situation, with a buy or sell signal being triggered when the index reaches an extreme level and then reverses. Because gold stocks move in tune with gold o...