Why and how do we use the SSI in trading? View our video and download the free indicator here
Gold– One-sided retail FX trader positioning warns that gold prices may continue higher, and indeed the same trader sample has called for XAU/USD gains through the past three weeks of trading.
Our data shows that the retail trading crowd remains marginally net-short Gold versus the US Dollar; a contrarian view of such leads us to call for further rallies. It is worth noting that positions have actually moderated since last week, and a mere 53 percent of open XAU/USD positions are currently short. Yet we would need to see a substantive shift towards crowd selling before calling for a meaningful reversal.
See next currency section: DAX - German DAX Shows Clear Signs of Turnaround
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
