Gold Price Shows Clear Risk of Sustained Turnaround
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Spot Gold: Retail trader data shows 75.0% of traders are net-long with the ratio of traders long to short at 3.0 to 1. The percentage of traders net-long is now its lowest since Jun 16 when it traded near 1253.52. The number of traders net-long is 6.2% lower than yesterday and 20.3% lower from last week, while the number of traders net-short is 21.5% higher than yesterday and 34.2% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Spot Gold price trend may soon reverse higher despite the fact traders remain net-long.
See next article in this week’s report: AUDUSD - Australian Dollar – Next Move is Key