Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account


Traders Short Gold for First Time Since January - Bottom in Place

By , Quantitative Strategist
25 April 2013 16:15 GMT
ssi_xauusd_body_Picture_14.png, Traders Short Gold for First Time Since January - Bottom in Place

GoldA substantial shift in retail forex trading positioning leaves our proprietary Speculative Sentiment Index indicator short Gold versus the US Dollar (ticker: USDOLLAR) for the first time since January. We see distinct risk of further Gold price gains.

Trade Implications – Gold: Two weeks ago we wrote that it was not a time to catch falling knives as our retail positioning-based SSI warned of further gold price weakness. Yet retail sentiment has seen a substantial swing; long interest has fallen a remarkable 48 percent from its recent peaks while short interest has surged 159 percent through the same stretch.

The impressive swing in positioning warns that gold prices likely set a short-term bottom, but our Senior Technical Strategist believes this may be a good opportunity to sell Gold strength.

--- Written by David Rodriguez, Quantitative Strategist for

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at

Facebook at

provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from

25 April 2013 16:15 GMT