Gold Prices Likely to Remain in Downtrend

DailyFX

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ssi_GOLD_body_Picture_14.png, Gold Prices Likely to Remain in Downtrend

GoldRetail FX crowds remain long Gold against the US Dollar, but the lack of conviction or volatility suggests that Gold prices could remain mostly range-bound.

Trade Implications – Gold: Several weeks ago I wrote that sharp Gold price declines alongside the similarly-fast-falling Australian Dollar warned of major moves in the S&P 500. Since then it seems as though gold has faded to the background as traders look to much bigger volatility in other markets.

Our retail sentiment-based positioning indicator shows crowds remain modestly net-long XAUUSD, and that in itself leaves us in favor of continued weakness. But given a finite sum of available trading margin, I won’t lie when I say I think there are more attractive trades elsewhere.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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