Gold Price Forecast to Fall Through Near Term
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Gold– Retail FX traders have recently turned net-long Gold prices versus the US Dollar, and a contrarian view of crowd sentiment suggests XAU/USD may continue onto fresh near-term lows. Indeed, total long interest has risen a notable 40 percent since last week while short interest is down 26 percent. Such sharp shifts often coincide with important turns in trends, and we believe this is no exception.
Near-term support starts near key congestion levels surrounding $1240, while a further breakdown could take the precious metal to the psychologically-significant $1200 mark. Only a marked shift in retail trader sentiment would change our trading bias.
See next currency section:DAX - German DAX Risks to the Downside
--- 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.