Waiting for gold to bottom? Watch this group of bulls

New York (Nov 21)  An 11% annual gain for any asset doesn’t seem terribly shabby.

That pretty much sums up where gold is as 2017 winds down, but there seems little excitement around the metal. Maybe that’s not too surprising as the investor love affair with equities goes on and on, and the S&P 500 looks at roughly a 15% gain for the year so far.

Gold is the place investors head to when the political and economic going gets rough, but it seems not much jolts investors these days. Washington and worries about the tax plan gave the metal a nice bump last week, but those gains dissipated when scares over instability in Germany were quickly shoved back in the drawer.

We had a bullish call on gold recently, so it’s only fitting that we toss a bearish one into the mix. Here’s our call of the day from Tiho Brkan, founder of The Atlas Investor blog, who says gold and silver have some way to go on the downside.

As Brkan explains in a series of tweets, there are a bunch of hedge funds holding about 200,000 long (bullish) positions on gold and a drop below $1,260 an ounce may push them out of the trade.

Reuters

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