Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
Gold–Retail FX traders remain long gold versus the US Dollar, and a contrarian view of crowd sentiment acts as signal that gold prices may continue to decline. It’s worth noting that total long positions have actually fallen as price plummets—a warning of potential capitulation. Yet we would need to see a much more sustained shift to call for a meaningful bounce in gold prices.
See next currency section: EURUSD – Euro Likely to Challenge Important Resistance 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 https://www.Facebook.com/DRodriguezFX