Gold Prices in Obvious Downtrend - Sell Bounces
Gold–A massive build in retail forex trader positions in gold leave us plainly in favor of further XAUUSD declines.
Trade Implications – Gold: Crowds are now their most net-long Gold since its virtual meltdown in April as it hits fresh multi-year lows. Momentum and crowd sentiment leaves us plainly in favor of further Gold price losses. The risk of a short-term bounce is admittedly very high, but the larger picture is clearly bearish and I think any major bounces should be sold.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.