Traders Bury Themselves in Gold Creating Bearish Opportunity
Spot Gold: Retail trader data shows 71.4% of traders are net-long with the ratio of traders long to short at 2.49 to 1. The percentage of traders net-long is now its highest since Apr 13 when it traded near 1344.85. The number of traders net-long is 8.4% higher than yesterday and 1.8% higher from last week, while the number of traders net-short is 20.0% lower than yesterday and 3.6% 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