When sentiment reaches extremes, markets are often near important long-term inflection points.

Is the current extreme in Gold sentiment suggesting that an important inflection point is in play?

This chart looks at Gold on a monthly basis over the past 40-years, with sentiment applied.

Two key lows took place for Gold back in 2001 and 2015 as bulls were hard to find.

The 2011 high in Gold took place as it was hitting its 261% Fibonacci extension level of the 1980 highs/1999 lows, as Gold bulls were easy to find (84% bulls).

Currently Gold is testing the 2011 highs and its 261% extension level again, as Gold bulls are once easy to find (83%).

Will it be different this time and Gold succeeds in breaking above 2011 highs and its 261% extension level at (2)?

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