sentix ASR Essentials 30-2015
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26 July 2015
Posted in
sentix Weekly
Gold sentiment badly tarnished
The latest sentix survey underlines the deep investor pessimism that overhangs commodities and commodity-related plays. On the equity market front, while survey respondents have become a little less pessimistic on the Chinese equity market as it has found near-term support around its long-term average, they remain deeply downbeat on China in the medium-term. This chimes with the weakening sentiment towards Emerging Market Equities that was evident in last week’s survey questions on asset classes. It is also consistent with investors’ highly downbeat views on Commodities. At a market level, Gold’s break below $1,100 has left it oversold on short-term momentum metrics, such as a 14-day RSI. However, any bounce-back may face resistance given that investors remain highly cautious on Gold from a medium-term strategic perspective (see Charts 2-4, page 2).
