Gold May Trade Narrowly Going Into the Weekend
Majority of Gold Traders Remain Net-Long
Spot Gold: Retail trader data shows 83.6% of traders are net-long with the ratio of traders long to short at 5.11 to 1. The number of traders net-long is 1.2% lower than yesterday and 15.2% higher from last week, while the number of traders net-short is 3.6% lower than yesterday and 18.1% lower from last week.
Gold Trader May Want to Hold
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.