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Gold May Rally Further as Crowds Go in Opposite Direction

By , Quantitative Strategist
21 March 2013 14:55 GMT
ssi_xauusd_body_Picture_17.png, Gold May Rally Further as Crowds Go in Opposite Direction

XAUUSDRetail forex traders have scaled back their Gold purchases versus the US Dollar (ticker: USDOLLAR), and the short-term shift in positions suggests the Greenback may slide further versus the resurgent precious metal.

Trade Implications – XAUUSD: We’ve continued to cite extremely net-long retail trader positioning on XAUUSD as a key risk to watch for declines, but the recent correction in positioning actually leaves us modestly bullish. Our Senior Technical Strategist first advocated going long Gold on February 28, and the XAUUSD position remains valid as long as price remains above 1575.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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ssi_xauusd_body_1a_3.png, Gold May Rally Further as Crowds Go in Opposite Direction

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21 March 2013 14:55 GMT