Sentiment Suggests Traders Could Flock to Gold
Spot Gold: Retail trader data shows 64.7% of traders are net-long with the ratio of traders long to short at 1.84 to 1. The percentage of traders net-long is now its lowest since Feb 20 when it traded near 1329.86. The number of traders net-long is 4.8% lower than yesterday and 10.9% lower from last week, while the number of traders net-short is 11.4% higher than yesterday and 28.5% 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.
--- Written by Dylan Jusino, DailyFX Research
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