Gold Prices Forecast to hit Further Highs
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Gold– One-sided retail FX trader positioning warns that gold prices may continue higher, and indeed the same trader sample has called for XAU/USD gains through the past three weeks of trading.
Our data shows that the retail trading crowd remains marginally net-short Gold versus the US Dollar; a contrarian view of such leads us to call for further rallies. It is worth noting that positions have actually moderated since last week, and a mere 53 percent of open XAU/USD positions are currently short. Yet we would need to see a substantive shift towards crowd selling before calling for a meaningful reversal.
See next currency section:DAX - German DAX Shows Clear Signs of Turnaround
--- 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.