Gold Prices at Potential Breaking Point
Gold–Retail Forex speculators have bought aggressively into recent Gold price weakness, and indeed long interest is at its highest since the precious metal dropped to $1200 in June.
Trade Implications – Gold: Our Senior Market Strategist notes that the Gold price downward correction may be ending, but we’ll need to see it hold key support to remain bullish in the short-term. Retail FX sentiment would likewise need to turn; as it stands, a further build in crowd buying would leave us clearly in favor of further weakness.
--- 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.