Recent data from retail traders indicates a strong bullish sentiment towards gold, with 63.96% of traders holding net-long positions. The long-to-short ratio stands at 1.77 to 1, showing a clear preference for long positions. However, this dominant bullish sentiment could paradoxically signal potential downward pressure on gold prices.

Compared to yesterday, the number of net-long traders has increased by 2.36%, while net-short positions have decreased slightly by 0.47%. The weekly trend is even more pronounced, with net-long positions up by 11.72% and net-short positions down by 18.12%.

Based on our contrarian approach to market sentiment, this data suggests that gold prices may continue to decline. The combination of current positioning and recent shifts supports our bearish outlook on gold.

GOLD (XAU/USD) LATEST:

Jun 24 2024

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