Gold Prices Likely Set Significant Peak
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GOLD –Retail traders have bought aggressively into recent Gold price declines versus the US Dollar, and the important shift in sentiment suggests that the XAU/USD exchange rate likely set an important peak.
Trade Implications GOLD – The majority of traders had turned short Gold as it crossed above the $1275 level and consistently sold until just three days ago as it reversed sharply from multi-month peaks. The fact that crowds are now buying into weakness as we see technical evidence of a XAUUSD reversal leaves us watching for further weakness.
--- 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.