Gold Prices Hold Support, Likely to Hit Further Highs
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Gold– Our retail forex trader data shows the majority remain short Gold Prices versus the US Dollar, and a contrarian view of ‘crowd’ sentiment suggests further XAU/USD gains are likely. Indeed the Speculative Sentiment Index has remained net-short since Gold traded above $1200/oz through mid-February.
Earlier this week we warned that a failure to hold key short-term support would lead us to call for a major Gold price breakdown, and yet the opposite has happened as the precious metal trades towards key highs. A look at sentiment points to further strength through near-term trading.
See next currency section: DAX - German DAX Likely to Fall Further
--- 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.