Gold–Retail forex crowds have grown far less long Gold against the US Dollar, and the noteworthy shift in sentiment suggests Gold prices may have set an important low.
Trade Implications – Gold: Our Senior Market Strategist believes that Gold may have set an important short-term low based on price and time cycles, and the recent shift in forex crowd sentiment adds weight to said forecast. Short positions are up 24 percent since last week while longs are effectively unchanged. We see this as contrarian signal that the precious metal may continue higher.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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- Finance Trading
- Commodity Markets
- Gold prices