Gold to Remain Below 1300 with Bearish Bias
Long-Gold Trade Appears to be Crowded
Spot Gold: Retail trader data shows 82.1% of traders are net-long with the ratio of traders long to short at 4.58 to 1. The number of traders net-long is 2.4% higher than yesterday and 3.5% higher from last week, while the number of traders net-short is 9.8% lower than yesterday and 4.6% 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.