Gold Prices at Potentially Significant Turning Point
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Gold– Retail forex traders remain long gold prices versus the US Dollar, and a contrarian view of crowd sentiment points to further XAU/USD weakness. Last week we noted that a substantial shift towards crowd selling warned of a potential turnaround for the precious metal. Yet we were clearly early in our calls for a trend turnaround
Our technical outlook is admittedly mixed, and it remains possible that gold prices may soon set a substantial low and turn higher. We nonetheless suspect this will coincide with a similar shift in sentiment, and indeed we will wait for our positioning data to show more substantial signs of a bigger shift.
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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.