Gold Price Likely to hit Key Range Highs
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Gold– Retail FX traders continue to sell into Gold price strength, and a contrarian view of crowd sentiment suggests XAU/USD may trade onto fresh highs. Past performance is not indicative of future results, but our data suggests that going against the crowd has been a winning strategy overall. Yet the same data shows retail traders tend to outperform in slow-moving market conditions.
The key caveat to our calls for Gold strength are therefore straightforward: going against the ‘crowd’ could work against us if the XAU/USD exchange rate sticks to its tight range. Ultimately we think Gold is likely to test range highs, but we would ideally see a rise in volatility before taking a stronger bullish trading bias.
See next currency section:DAX - German DAX Uptrend Remains Intact
--- 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.