Gold: Long Positions Rise as Price Continues to Weaken
Net-Long Positions Climb to 87%
Spot Gold: Retail trader data shows 87.0% of traders are net-long with the ratio of traders long to short at 6.71 to 1. The number of traders net-long is 3.5% higher than yesterday and 1.1% higher from last week, while the number of traders net-short is 3.6% lower than yesterday and 9.2% higher from last week.
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Gold Sentiment Signals a 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. Positioning is more net-long than yesterday and last week. The combination of current sentiment and recent changes gives us a bearish Spot Gold trading bias.
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.