Gold–Retail forex traders remain marginally net-short Gold versus the US Dollar (ticker: USDOLLAR), and our contrarian view of crowd sentiment leaves us in favor of short-term strength.
Trade Implications – Gold: Two weeks ago we wrote that the majority of retail traders turned short Gold prices for the first time since January, and that was an early warning sign that a short-term bottom was in place. .
We’ll nonetheless keep sight of the bigger picture. As tempting as it might be to buy in expectations of a minor bounce, long-term studies favor continued Gold price declines.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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 http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX