Gold Prices May Break to Fresh Highs
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Gold– Retail traders have most recently sold into Gold price strength, and a contrarian view of crowd sentiment points to further gains. We nonetheless highlighted the key difficulty last week: retail traders will often outperform in choppy and range-bound trading conditions.
All else equal, we believe that a move above $1250 seems likely. Yet we would need to see a marked shift in volatility to call for a larger break higher.
See next currency section: DAX - German DAX May Stick to Tight Trading Range
--- 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.