Surging demand for gold and silver
The total known ETF holdings of gold and silver have surged over the past 6 months, driven by higher prices. Whether precious metals prices are rising due to economic uncertainty or increased demand for an inflation hedge (central banks are printing money!) is up for speculation, something that we don't do here at SentimenTrader.
Regardless of the reason, this is the first time in years since gold ETF holdings increased more than 24% over the past 6 months. The 3 most recent historical cases all led to pullbacks in gold at least over the next few weeks:
Similarly, silver ETF holdings have increased by more than 26% over the past 6 months:
This happened in 2007, when it wasn't a clear bearish factor for silver. The April 2007 historical case immediately led to a pullback in silver, but the December 2007 historical case led to a massive ramp higher before silver collapsed.