Net-Short Traders Increase past the 2 Month Highs
Spot Gold: Retail trader data shows 81.6% of traders are net-long with the ratio of traders long to short at 4.44 to 1. The number of traders net-long is 0.9% lower than yesterday and 0.5% lower from last week, while the number of traders net-short is 2.7% higher than yesterday and 1.5% higher from last week.
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Change in Net-Long Positions Encourage Bullish Outlook
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 Jack Schwarze, DailyFX Research