Gold Price May Fall Heading Into the Weekend
Traders Are 23% Less Net-Short
Spot Gold: Retail trader data shows 78.5% of traders are net-long with the ratio of traders long to short at 3.65 to 1. The number of traders net-long is 0.4% lower than yesterday and 23.6% higher from last week, while the number of traders net-short is 6.5% lower than yesterday and 23.8% lower from last week.
Gold Yields Bearish Signal
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.