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Gold– Our retail forex trader data accurately called a major Gold Price rally two weeks ago, and a sustained shift in sentiment leaves us plainly in favor of further near-term XAU/USD gains.
Our data shows there are currently 1.5 open retail positions short XAU/USD for every 1 that is long, and a contrarian view of crowd sentiment leaves us plainly in favor of buying into gains. The severity with which Gold prices have surged through major multi-month highs acts as further confirmation that this move is the ‘real deal’.
We would need to see a substantive shift in retail forex positioning to call for a meaningful XAU/USD reversal.
See next currency section: DAX - German DAX Poised to Fall Even Further
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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