Bearish Contrarian Bias Forms as Traders Flock to Gold
Spot Gold: Retail trader data shows 80.1% of traders are net-long with the ratio of traders long to short at 4.03 to 1. The number of traders net-long is 1.6% higher than yesterday and 5.8% higher from last week, while the number of traders net-short is 15.6% lower than yesterday and 2.7% 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. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Spot Gold-bearish contrarian trading bias.
--- Written by Dylan Jusino, DailyFX Research
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