Net-Long Positions Dip 10.5%
Spot Gold: Retail trader data shows 84.7% of traders are net-long with the ratio of traders long to short at 5.52 to 1. The number of traders net-long is 8.2% lower than yesterday and 10.5% lower from last week, while the number of traders net-short is 7.9% lower than yesterday and 1.3% higher from last week.
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Gold Net-Long Shifts Indicate Downtrend Is Tiring
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