Fear & Greed Index and Market Sentiment for Precious Metals
The table shows the current Fear & Greed Score of all five precious metals in direct comparison. Each value ranges from 0 (Extreme Fear) to 100 (Extreme Greed).
The columns show the six individual indicators: Momentum, Volatility, Ratio Signal, Acceleration, ATH Distance and USD Strength. Click on a metal for the detailed analysis.
As of 2026-05-30. All values 0–100 (0 = Extreme Fear, 100 = Extreme Greed). Based on LBMA fixing prices (Copper: Spot price).
The chart shows the Fear & Greed Index of all precious metals over time. Each line represents a metal.
Select the time period above (1M to Max). Click on the metal buttons to show or hide individual lines. Hover over the chart to see the values on a specific day.
The colored zones in the background mark the sentiment areas: Red = Fear, Yellow = Neutral, Green = Greed.
The Fear & Greed Index measures the current market sentiment for precious metals on a scale from 0 (Extreme Fear) to 100 (Extreme Greed). It is based on 6 indicators calculated daily from real market data:
Price relative to the 50-day moving average. Above average = greed, below = fear.
Short-term vs. long-term fluctuations. High short-term volatility = fear.
Gold/silver ratio and metal ratios as a sentiment indicator.
Change in price dynamics: Is the trend accelerating or decelerating?
Proximity to all-time high. Close to ATH = greed, far away = fear.
EUR/USD trend over 20 days. Weak dollar = greed for precious metals.
Psychology Behind the Index
Financial markets are not only driven by fundamentals, but significantly by human emotions. Two forces dominate investor behavior: Fear — the fear of losses leading to panic selling and underweighting — and Greed — the euphoria during rising prices that leads to exaggeration and risky behavior.
The Pendulum of Market Sentiment
Market sentiment regularly swings between extremes. During fear phases, investors often sell below value because they fear further losses. During greed phases, they buy at inflated prices because they don't want to miss the next rally (FOMO — Fear of Missing Out). Both extremes create mispricings that correct over time.
Why a Sentiment Index Helps
The problem: As an investor, you are caught up in the sentiment yourself — and don't realize it. When all the news is negative and your portfolio is deep in the red, selling feels "right." An objective sentiment index creates distance. It quantifies what headlines only describe qualitatively, helping you put your own emotional reaction into perspective.
Warren Buffett: "Be fearful when others are greedy, and greedy when others are fearful." — This principle is the core idea behind the contrarian use of sentiment indicators.
The 6 Indicators in Detail
Our Fear & Greed Index combines six technical market indicators, each capturing different aspects of market sentiment. The weighting reflects the predictive power of each indicator:
Momentum
25 %Compares the current price with the 50-day moving average (SMA50). If the price is significantly above the average, there is upward momentum and greed. If it is below, fear prevails. A distance of more than 10% from the SMA50 indicates an exaggeration.
Volatility
25 %Compares short-term volatility (10 days) with long-term volatility (60 days). If short-term volatility spikes, it signals nervousness and fear. Low, stable volatility indicates composure or indifference.
Ratio Signal
15 %Analyzes the gold/silver ratio and other metal ratios. A sharply rising gold/silver ratio (gold gaining relative to silver) signals a flight to safety and fear. A falling ratio shows risk appetite — investors are betting on the more industrial silver.
Acceleration
15 %Measures whether the current price trend is accelerating or decelerating. Increasing upward acceleration signals growing greed — more and more buyers are jumping in. A slowdown after a strong rally may indicate an upcoming trend reversal.
ATH Distance
10 %Measures the distance to the all-time high (ATH). The closer the price is to the ATH, the greedier the sentiment — investors expect new records. A distance of more than 20% from the ATH indicates resignation and fear.
USD Strength
10 %Tracks the EUR/USD trend over 20 trading days. A weakening dollar is generally positive for precious metals (greed), as commodities traded in dollars become cheaper for non-dollar buyers. A strengthening dollar pushes prices down and signals fear.
The 5 Sentiment Zones
The index divides the scale from 0 to 100 into five zones. Each zone describes a typical market situation with characteristic investor behavior:
Extreme Fear
Panic and capitulation dominate. Investors sell massively, often below value. News flow is predominantly negative. Historically, such phases have often been good entry points — however, "Extreme Fear" can also persist for weeks before a recovery begins.
Fear
Prevailing caution. Investors hold cash or reduce positions. The mood is subdued but not yet panicked. Often a phase of bottom formation where bold buyers slowly position themselves.
Neutral
Balanced market sentiment. Neither fear nor greed predominates — the market is waiting for directional catalysts. Typical of sideways phases and consolidations. No extreme mispricing in either direction.
Greed
Growing optimism and increasing risk appetite. Prices rise steadily, positive news predominates. Investors become more confident — the risk of buying at inflated prices increases. Not yet a clear warning sign, but caution is warranted.
Extreme Greed
Euphoria and FOMO buying. "This time it's different" — a typical phrase of this phase. Historically, periods of extreme greed have frequently preceded corrections. No reason to panic, but a signal not to make impulsive additional purchases and instead secure existing gains.
Contrarian Investing with the Fear & Greed Index
The most well-known application of sentiment indicators is the contrarian strategy: swimming against the current when the masses panic or overflow with euphoria.
Buying During Fear Phases
When the index drops below 20, Extreme Fear prevails. Most investors are selling or too scared to enter. Historically, these very phases often offered attractive entry prices in precious metal markets — such as after the flash crash of 2013, the COVID crash in March 2020, or during the rate-hike fears of 2022. The prerequisite: you need the nerve to act against the prevailing sentiment and withstand further short-term losses.
Caution During Greed Phases
An index above 80 does not mean you should sell immediately — trends can run longer than expected. But it is a signal not to make new impulsive purchases and to consciously hold existing positions. Those who buy regularly via a savings plan can maintain their rate during greed phases but should avoid making extra purchases.
Practical Rules
- ◆ Index below 25: Consider whether increasing existing positions makes sense. Don't wait for the absolute bottom — you almost never catch it.
- ◆ Index 40-60: Business as usual. Let the savings plan continue, no special actions needed.
- ◆ Index above 80: No panic buying. Hold existing positions, but critically assess whether you really want to buy more.
Important: Contrarian investing requires discipline and a long-term investment horizon. It does not work as a short-term trading signal — an index of 15 can be at 10 next week before the turn comes. The strategy pays off over months and years, not days.
Limitations of the Sentiment Index
As useful as the Fear & Greed Index is as a guide — no single indicator can fully capture the complexity of a market:
- ◆ Not a timing tool — The index shows sentiment extremes, but not the exact turning point. An index of 10 can be at 5 tomorrow before it turns. "Extreme Fear" can last for weeks.
- ◆ Purely technically based — The index is calculated from price and exchange rate data. It does not capture qualitative factors such as central bank announcements, geopolitical developments or regulatory changes that can fundamentally alter the market.
- ◆ Structural breaks possible — During periods of sustained new all-time highs (such as 2024/25 for gold), the index can remain in the greed zone permanently without a correction following. Structurally rising demand (central bank purchases, de-dollarization) can overlay traditional sentiment cycles.
- ◆ Interpret metal-specifically — A score of 30 for gold (primarily an investment metal) has a different meaning than for palladium (primarily an industrial metal). Each metal's detail page offers a more nuanced analysis than the overview page.
Conclusion: The Fear & Greed Index is a compass, not a GPS. It shows the direction of market sentiment, but not the exact route. Use it as one of several building blocks — alongside fundamental analysis, seasonal patterns and your own investment horizon.
Frequently Asked Questions About the Fear & Greed Index
What exactly does the Fear & Greed Index measure?
The index quantifies the prevailing market sentiment on a scale from 0 to 100. It aggregates six technical indicators — momentum, volatility, ratio signal, acceleration, ATH distance and USD strength — into a single value. Low values signal fear (investors sell, prices fall), high values signal greed (investors buy euphorically, prices rise rapidly).
Is the Fear & Greed Index a buy signal?
No, the index is not a direct trading signal but a sentiment barometer. A value in the "Extreme Fear" range does not automatically mean prices will rise tomorrow — the fear may be justified and prices may continue to fall. Nevertheless, historical experience shows that periods of extreme fear have statistically often been good entry points, because panic selling eventually subsides.
Why do the values differ for different metals?
Each metal has its own market dynamics. Gold as the primary investment metal reacts strongly to geopolitical uncertainty and interest rate decisions. Silver fluctuates more because it is demanded both as an investment and industrially. Platinum and palladium are primarily driven by the automotive industry. Therefore, gold can show "Extreme Greed" while palladium simultaneously stands at "Fear."
How often is the index updated?
The Fear & Greed Index is recalculated once daily based on current market data. The calculation takes place after the LBMA fixing and considers the day's closing prices. Intraday fluctuations are not included — the index reflects the overarching sentiment, not short-term spikes.
What do the individual sentiment zones mean?
The index has five zones: "Extreme Fear" (0-20) signals panic and capitulation in the market. "Fear" (21-40) shows prevailing caution. "Neutral" (41-60) means balanced market sentiment without a clear direction. "Greed" (61-80) signals growing optimism and increasing risk appetite. "Extreme Greed" (81-100) indicates euphoria that often accompanies overbought markets.
Can I use the index for long-term investment decisions?
The Fear & Greed Index is primarily suited as a short-term sentiment barometer and supplementary indicator, not as the sole basis for long-term decisions. For strategic asset allocation, fundamental factors (inflation, monetary policy, supply and demand) are more important. However, the index can help optimize entry timing: those who want to buy gold anyway will statistically find better prices during fear phases.