Gold: Reversal Above 1300 Despite Bearish Sentiment
Long-GoldTrade Ticks Below 80%
Spot Gold: Retail trader data shows 79.5% of traders are net-long with the ratio of traders long to short at 3.88 to 1. The number of traders net-long is 4.7% lower than yesterday and 8.4% lower from last week, while the number of traders net-short is 0.7% higher than yesterday and 2.5% higher from last week.
Gold Trend Likely to Reverse
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Spot Gold price trend may soon reverse higher despite the fact traders remain net-long.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.