Why and how do we use the SSI in trading? View our video and download the free indicator here
Gold– Aggressively one-sided retail forex trader positioning warns that Gold prices may continue to decline through near-term price action. Our data shows that total open long positions in XAU/USD outnumber those short by approximately 2 to 1—the largest extreme since Gold prices set a key low near $1100.
It is possible that such one-sided positioning warns of a similar sentiment extreme and a potential short-term low, but such extremes are only clear in hindsight. Until we see a substantive shift in trader sentiment we’ll remain in favor of selling into XAU/USD weakness.
See next currency section: EURUSD - Forex Sentiment Data Shows that Euro Remains a Sell
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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
