Majority of Gold Traders Remain Net-Long
Spot Gold: Retail trader data shows 82.0% of traders are net-long with the ratio of traders long to short at 4.55 to 1. The number of traders net-long is 4.0% lower than yesterday and 9.3% lower from last week, while the number of traders net-short is 12.3% lower than yesterday and 13.5% lower from last week.
Gold Price Subdued with Bearish Sentiment
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