Today in gold news, Jim Cramer, host of the popular TV show Mad Money, examined gold charts with the help of Carley Garner yesterday. He noted several of the points we’ve been making lately – not surprising since we’re looking at the same charts – and came to a similar conclusion.
With large traders holding the smallest long sizes in years, Cramer thinks “a monster rally might be imminent”. Unlike small- and medium-sized traders, large traders are not likely to go net-short on gold, so an historically-low net-long position is a sign of very negative sentiment. Of course, gold can bounce along the current bottom for a while yet; we’ll be watching closely for the initial breakout.
As with most Mad Money clips, CNBC posts on their website. The clip is rather brief, but does get the main point across. You can watch it here.
Related: Has Gold Bottomed Out?