Net long gold positions on US commodity exchange COMEX fell by 14% to 106,941 contracts in the week to November 29, Commodity Futures Trading Commission data showed Monday.
Net length has now declined by just under 45% in the last three weeks to its least bullish position since March.
Investor demand has fallen sharply since gold prices weakened at the start of November, with spot prices trading at fresh 10-month lows Monday around $1,265/oz, down around $10 from Friday under renewed dollar strength.
The dollar was up around 0.25% against the euro Monday as Italian prime minister Matteo Renzi said he would resign on following a referendum defeat on constitutional reform Sunday.
Gold initially jumped in early Asian trade Monday close to $1,190/oz following the news, but has since shed all its gains.
At the same time, gold ETF outflows continue to add to price pressure.
The world's largest gold-backed ETF, SPDR Gold Shares, showed outflows of just under 15 mt in the week to Friday.
The fund declined nearly 60 mt in November, the largest monthly outflow since May 2013, according to company data. It means the fund has given back all its inflows since June, down 10% from its August peak to around 870 mt.
Elsewhere, net long silver positions were largely unchanged at 42,642 contracts, up 0.3% on the week. Silver is trading around $16.60/oz Monday morning, down around 15 cents/oz on Friday, in line with gold.
Platinum positions fell for the third straight week by 24% to 6,679 contracts, its lowest for six weeks. Palladium positions climbed 10% to 13,747 contracts, meanwhile, its highest in eight weeks. Having surged to 18-month highs last week above $775/oz, palladium is down to around $730/oz Monday. Platinum was largely unchanged on Friday, at $925/oz Monday morning.
