Gold Sell-Off May Pan Out Based on Sentiment
Spot Gold: Retail trader data shows 71.7% of traders are net-long with the ratio of traders long to short at 2.54 to 1. The number of traders net-long is unchanged than yesterday and 0.1% lower from last week, while the number of traders net-short is 3.5% lower than yesterday and 4.3% 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