Gold Prices Suddenly Suggest it’s Time to Sell
Why and how do we use the SSI in trading? View our video and download the free indicator here
XAUUSD – Retail FX traders are at their most heavily net-long Gold prices in over eight months, and a contrarian view of ‘crowd’ sentiment points to further XAU/USD weakness. A further break below key support near the $1,300 mark would help confirm a larger trend turnaround. And it will be important to watch how traders respond to Gold prices at the psychologically-significant price floor.
As long as retail FX traders continue to buy, we will continue to call for Gold price weakness.
See next currency section:S&P - US S&P 500 Looks at Danger of Turnaround
--- Written by David Rodriguez, Senior 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