Gold Prices Look like a Buy versus US Dollar
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Gold– A substantial swing in retail FX trader sentiment warns that Gold prices may have set an important low in US Dollar terms. Indeed, our data shows that ‘the crowd’ is now net-short XAU/USD for the first time since it broke below $1200 in May. As long as the majority of retail FX traders remain short the precious metal price, we will maintain our typical contrarian bias in favor of near-term gains.
See next currency section: EURUSD - Euro Looks like a Buy, but Watch Reactions at $1.12
--- 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.