Gold Prices Likely to Fall Further
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Gold– Retail forex traders remain aggressively long Gold versus the US Dollar, and a contrarian view of crowd sentiment warns of further near-term weakness. Outstanding long positions currently outnumber those short by 2.7 to 1—73 percent of open interest is long.
We will need to see a substantive shift towards crowd XAU/USD-selling in order to call for a meaningful bounce in gold prices.
See next currency section:EURUSD - Violent Euro Rally Warns that Downtrend is Over
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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