Gold Prices May Resume Downtrend
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Gold– A meaningful shift in retail FX trader positioning in Gold Prices warns that the precious metal may continue lower through near-term trading. Last week we noted that a substantial swing in positions favored XAU/USD rallies, and indeed that forecast worked fairly well. Yet we have more recently seen the majority of traders buy into weakness. A contrarian view of ‘crowd’ sentiment shifts our focus to the downside once more.
See next currency section: EURUSD - Euro Looks like a Buy, but Watch Reactions at $1.12
--- 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.