Stat of the day – gold traders most bearish since Jan 2010

What with the largest short position in gold futures since 2001 (data from CoT stats), we now have news out of Bloomberg that gold traders are the most bearish since Jan 2010… 

From Bloomberg – Gold traders are the most bearish in 3 1/2 years after prices fell to the lowest since 2010 following Federal Reserve Chairman Ben S. Bernanke’s comments that the central bank may start curbing stimulus.

Fifteen analysts surveyed by Bloomberg expect prices to fall next week, with six bullish and five neutral, the largest proportion of bears since January 2010. The metal slumped below $1,300 an ounce for the first time since September 2010 yesterday. Investors sold 520.7 metric tons valued at about $21.7 billion from exchange-traded products this year.

We show below the price action in gold from Jan 2010 – the last time bearishness was so prevalent. 

Oversold, unloved and fear ominpresent. Yup, very very few people will do it due to the hard-wiredness of human nature but, as a wider picture, I can find no better buying opportunity out there today (KAZ excepted of course!)