Gold Prices Likely to Remain in Downtrend
Trade Implications – Gold: Several weeks ago I wrote that sharp Gold price declines alongside the similarly-fast-falling Australian Dollar warned of major moves in the S&P 500. Since then it seems as though gold has faded to the background as traders look to much bigger volatility in other markets.
Our retail sentiment-based positioning indicator shows crowds remain modestly net-long XAUUSD, and that in itself leaves us in favor of continued weakness. But given a finite sum of available trading margin, I won’t lie when I say I think there are more attractive trades elsewhere.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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