Gold Forecast Changes Once Again – Third time a Charm?
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Gold– An aggressive shift in retail forex trader positioning warns that Gold prices may break to fresh lows through near-term trading. This is admittedly the opposite of what we said last week, but a XAU/USD failure to break to fresh highs has shifted our focus. Since then our retail trader data shows ‘the crowd’ flipped to net-long Gold prices for only the second time in three months.
Ideally we would see a sharp break below $1,200 to reinforce our calls for a larger breakdown, and in the meantime we expect gold prices towards said support line.
See next currency section: DAX - German DAX Likely to Trade Near Lows
--- 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.