The Gold Sentiment Index uses a computer algorithm that scans all articles on the Internet. In them, he looks for certain keywords, from which it can be concluded whether the market is in a bearish or bullish mood. Positive phrases for gold include the following words: high inflation, scarcity, volatility, supercycle and quantitative stimulus, and here are the negative words: dollar strengthening and low inflation. Moreover, the frequency of articles and news on the topic of gold is of great importance for assessing the situation.
“We are currently witnessing an upward trend in the gold market,” said Hanke. “The money supply in the economy continues to grow, and the rate of circulation of money in the economy will continue to accelerate. Inflation is gaining momentum, which is already 2 or even 3 times higher than the target of the US Federal Reserve. And this factor is very positive for the gold market, ”the professor adheres to this point of view.