Gold Prices Likely to Fall Further Until this Changes
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Gold– Aggressively one-sided retail forex trader positioning warns that Gold prices may continue to decline through near-term price action. Our data shows that total open long positions in XAU/USD outnumber those short by approximately 2 to 1—the largest extreme since Gold prices set a key low near $1100.
It is possible that such one-sided positioning warns of a similar sentiment extreme and a potential short-term low, but such extremes are only clear in hindsight. Until we see a substantive shift in trader sentiment we’ll remain in favor of selling into XAU/USD weakness.
See next currency section: EURUSD - Forex Sentiment Data Shows that Euro Remains a Sell
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.