Gold Prices Lose their Luster - Watch for Further Declines
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Gold–Retail FX traders remain long gold versus the US Dollar, and a contrarian view of crowd sentiment acts as signal that gold prices may continue to decline. It’s worth noting that total long positions have actually fallen as price plummets—a warning of potential capitulation. Yet we would need to see a much more sustained shift to call for a meaningful bounce in gold prices.
See next currency section: EURUSD - Euro Likely to Challenge Important Resistance Levels
--- 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.