In most cases when an asset such as gold experiences a corrective decline over a period of several weeks, investor sentiment tends to become bleak as the decline nears its nadir. This is in keeping with the tendency for short interest to increase on the way down, which in turn serves as fuel for a short-covering rally once investors realize the decline is no longer justified by current fundamentals.
If the latest batch of gold commentaries and articles appearing on many financial portals is any indication, however, investors are as bullish on gold’s prospects now