Gold May Falls Farther As Sentiment Sours
Net-Long Positions Near the Highest Level This Year
Spot Gold: Retail trader data shows 84.9% of traders are net-long with the ratio of traders long to short at 5.61 to 1. The number of traders net-long is 1.4% higher than yesterday and 2.4% lower from last week, while the number of traders net-short is 0.2% higher than yesterday and 6.6% lower from last week.
Gold Trades With 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.