Gold Price Outlook Suggests Further Declines Likely
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Gold – Retail FX traders have bought aggressively into Gold price declines, and a contrarian view of crowd sentiment warns that the precious metal may continue lower versus the US Dollar. Our data shows that the ratio of open long to short positions stands at 1.7:1; 64 percent of open trades are long.
As long as crowds continue to buy we will remain in favor of selling into gold price declines.
See next currency section: EURUSD - Euro near Potentially Significant Turning Point versus Dollar
--- 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.