By Mark Hulbert
CHAPEL HILL, N.C. — Gold will continue to struggle until gold market timers become significantly more bearish.
That’s the lead sentence of a column I wrote two months ago that focused on a contrarian analysis of sentiment among gold market timers. And it remains just as applicable today. At no point since then has gold /zigman2/quotes/200593176/composite GLD +0.92% sentiment dropped into the “excessive bearishness” zone that triggers a contrarian buy signal.
And, sure enough, gold /zigman2/quotes/210034565/delayed GC00 +0.19% has struggled. Bullion today is trading for more than $90 per ounce less than it was then. Gold mining shares have performed even worse: The VanEck Gold Miners ETF /zigman2/quotes/206399889/composite GDX +2.25% is more than 20% lower today than in early May.