Price of Gold May have Set Important Low
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Gold– A substantial shift in forex trader positioning warns that the downtrend in gold prices may soon come to an end. Last week we warned that sentiment was at its most one-sided since the pair traded to important lows in July—nearly 80 percent of all open positions were long.
Since last week, however, the number of open short positions surged 95 percent while long positions fell 24 percent. It’s early yet, but the sharp turnaround warns that the trend likely turned in the previously-fast-falling precious metal.
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--- 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.