Gold: 25% Jump in Overnight Short Positions Spark a Bullish Bias
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Short Positions Hit a 2-month High
Spot Gold: Retail trader data shows 82.0% of traders are net-long with the ratio of traders long to short at 4.56 to 1. The number of traders net-long is 1.5% lower than yesterday and 2.0% higher from last week, while the number of traders net-short is 25.0% higher than yesterday and 15.5% higher from last week.
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Gold Sentiment Prompts a Bullish 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. 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.
Recommended Reading: CoT Update: Large Speculators Net-short Gold First Time in a Long Time
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.