Gold May Tumble as Traders Remain Net-Long
Spot Gold: Retail trader data shows 74.9% of traders are net-long with the ratio of traders long to short at 2.98 to 1. The percentage of traders net-long is now its highest since Dec 14 when it traded near 1253.47. The number of traders net-long is 7.3% higher than yesterday and 7.6% higher from last week, while the number of traders net-short is 9.8% lower than yesterday and 13.7% lower 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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