Yahoo Finance 
Gold Prices Near a Potentially Significant Turning Point
DailyFX.com -
Why and how do we use the SSI in trading? View our video and download the free indicator here
XAUUSD – Retail FX traders continue to buy aggressively into Gold Price weakness, and a contrarian view of ‘crowd’ sentiment gives as a firmly bearish trading bias on the precious metal. Indeed, our data shows there are over 2.7 retail trader positions long XAU/USD for every 1 short—near its most extreme since Gold prices set a key low through late 2015.
The caveat is thus straightforward—retail FX is often ‘correct’ at major turning points, and the fact that traders are extremely long suggests we are at a potential sentiment and price extreme. Yet such reversals are only clear in hindsight. We will continue to call for Gold price weakness until we see a substantive shift in trader sentiment.
See next currency section:EURUSD - Euro Forecast to Fall even Further versus US Dollar
--- Written by David Rodriguez, Senior 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 http://www.twitter.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.
