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Gold May Resume Downtrend

Published 08/27/2015, 12:58 PM
Updated 07/09/2023, 06:31 AM

Gold Vs. The USD

Gold

A meaningful shift in retail FX trader positioning in gold prices warns that the precious metal may continue lower through near-term trading. Last week we noted that a substantial swing in positions favored XAU/USD rallies, and indeed that forecast worked fairly well. Yet we have more recently seen the majority of traders buy into weakness. A contrarian view of ‘crowd’ sentiment shifts our focus to the downside once more.

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

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