Gold at Potentially Substantial Turning Point
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GOLD – Forex traders are now their most long Gold prices since the pair crashed below $1600, and the potential for a sentiment extreme warns that the precious metal is near an important turning point.
Trade Implications GOLD – Gold prices are currently trading near pivotal support at $1260, and extremely one-sided crowd sentiment suggests the next move will be significant. A purely contrarian view of crowd sentiment favors a breakdown, but an extremely low-volatility environment limits the likelihood of a crash as we saw through early-2013. We’ll watch Gold’s next moves as they could likely prove decisive.
See next currency section: EURJPY - Euro Likely to Fall further versus Yen
--- 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.