Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
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
Automate our SSI-based trading strategies via Mirror Trader free of charge
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
Facebook at http://www.Facebook.com/DRodriguezFX
