Gold Sentiment Reaches the Highest Level While Price Trades Below 1280
Net-Short Traders Fall By 37% Overnight
Spot Gold: Retail trader data shows 85.0% of traders are net-long with the ratio of traders long to short at 5.66 to 1. The number of traders net-long is 1.6% higher than yesterday and 1.9% lower from last week, while the number of traders net-short is 37.3% lower than yesterday and 33.1% lower from last week.
Gold Shifts to Bearish Bias
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 Abdullah AlAmoudi, DailyFX Research
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