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Gold–Retail forex traders have bought into recent Gold price weakness against the US Dollar, and a contrarian view of crowd sentiment leaves us in favor of further XAUUSD weakness.
Trade Implications – Gold: Crowds had recently been selling into the Gold price rally into monthly highs, but we’ve most recently seen a significant reversal in both price and sentiment. Short interest has fallen a noteworthy 20 percent overnight, while longs have grown by five percent. Our Senior Technical Strategist points out that Gold price weakness from these levels would help confirm an important top, and indeed it seems as though XAUUSD could fall further from recent peaks.
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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