U.S. Markets open in 25 mins.

Gold Prices See Meltdown - Watch Out Below

David Rodriguez

ssi_gold_body_Picture_14.png, Gold Prices See Meltdown - Watch Out Below

GoldWhat a difference a week makes. Last week I effectively said Gold wasn’t worth trading, but this week it’s the biggest move of any major currency. There’s big risk of further Gold price losses.

Trade Implications – Gold: Retail traders have been all-too-happy to buy into these dramatic gold price declines, and the post-FOMC Gold meltdown is not exactly a sign of healthy markets. There are almost 2 traders long Gold for every one that’s short, and that ratio is gaining. Could XAU bounce? Sure—anything’s possible. But our markets strategist doesn’t see Gold price support until 1273, and increasingly one-sided sentiment warns against joining the crowd in buying at these levels.

--- Written by David Rodriguez, Quantitative 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 https://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.