Gold Prices Hold Support, Likely to Hit Further Highs
Why and how do we use the SSI in trading? View our video and download the free indicator here
Gold– Our retail forex trader data shows the majority remain short Gold Prices versus the US Dollar, and a contrarian view of ‘crowd’ sentiment suggests further XAU/USD gains are likely. Indeed the Speculative Sentiment Index has remained net-short since Gold traded above $1200/oz through mid-February.
Earlier this week we warned that a failure to hold key short-term support would lead us to call for a major Gold price breakdown, and yet the opposite has happened as the precious metal trades towards key highs. A look at sentiment points to further strength through near-term trading.
See next currency section: DAX - German DAX Likely to Fall Further
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via Twitter at http://www.twitter.com/DRodriguezFX