Gold Prices Dip While Traders Reduce Net-Longs
Traders Net-Short 9% Higher Since Previous Week
Spot Gold: Retail trader data shows 86.0% of traders are net-long with the ratio of traders long to short at 6.12 to 1. The number of traders net-long is 2.1% lower than yesterday and 0.3% lower from last week, while the number of traders net-short is 0.8% higher than yesterday and 9.4% higher from last week.
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Change in Gold Sentiment Suggests Upside Ahead
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 Yayati Tanwar, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.