Gold And Silver Outlook: Xau/Usd, Xag/Usd May Rise As Retail Traders Turn Bearish

  • Posted on July 18, 2023
  • News
  • By FC Team
  • 361 Views

In recent days, gold and silver prices have been pushing higher, moves that were in response to a cautious weakening in US Treasury yields as well as the US Dollar. In reaction, retail traders have increased their downside exposure in these precious metals. This can be seen by looking at IG Client Sentiment (IGCS), which functions as a contrarian indicator. With that in mind, is this a sign that further gains might be ahead for XAU/USD and XAG/USD?The IGCS gauge shows that about 66% of retail traders are net-long gold. Since most of them are biased to the upside, this hints that prices may continue falling down the road. That said, downside exposure has increased by 6.29% and 14.69% compared to yesterday and last week, respectively. With that in mind, recent changes in exposure hint that prices may reverse higher despite overall positioning. Daily FX

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