Gold Prices in Position for Continued Weakness
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Gold– Retail FX traders remain steadily long Gold versus the US Dollar, and a contrarian view of crowd sentiment favors continued weakness. It’s worth noting that positions have moderated somewhat since last week as the precious metal bounced off of recent lows. Yet we will need to see a substantive shift towards crowd XAU/USD-selling in order to call for a meaningful bounce in gold prices.
See next currency section: EURUSD - Euro Forecast to Continue Rallying versus US Dollar
--- 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.