Bearish Sentiment Signal for Gold Price
Gold price, news and analysis:
- Retail trader positioning data show that 82% of traders are net-long gold while only 18% are net-short.
- A contrarian view of crowd sentiment suggests that the outlook is therefore bearish.
Bearish signal for gold price
Retail traders are heavily net-long gold, according to the latest positioning data. At DailyFX, we typically take a contrarian view of crowd sentiment and that means the outlook for the gold price is bearish.
From a fundamental perspective, gold is off its near-term highs on a firm US Dollar, jitters ahead of an important speech by Federal Reserve Chair Jerome Powell at the Economic Club of New York later Wednesday and the upcoming meeting of US President Donald Trump and Chinese President Xi Jinping at the G20 meeting that begins Friday in Argentina.
Gold Price Chart, 30-Minute Timeframe (November 13-28, 2018)
Technically too the outlook is not too positive, although the gold price has stabilized Wednesday after its falls Tuesday.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.