Peter Brimelow Says Goldbugs Undeterred By Friday Drop

In his latest Marketwatch column, Peter Brimelow says that the hard-core goldbugs are undeterred by gold's recent rise and Friday's sickening plop. One of the main reasons is that the shares are beginning to catch up with the metal itself:

A key reason for the gold bugs' cheerfulness: the striking recovery of the gold shares on Friday. The NYSE Arca Gold Bugs and Phlx Gold Silver Index ) indices actually finished positive on the day despite gold being down -- and despite the dreadful day for equities as a whole.

Although open interest made a record high last Thursday, the MarketVane Bullish Consensus for gold and the Hulbert Gold Newsletter Sentiment Index pulled back last week; that fall suggests sentiment isn't stubbornly bullish, which is a good sign for the metal.