Gold: Long Positions Remain Above 80% Despite Recent Drop in Prices
Weekly Short Positions Increase 10.4%
Spot Gold: Retail trader data shows 80.3% of traders are net-long with the ratio of traders long to short at 4.09 to 1. The number of traders net-long is 3.0% lower than yesterday and 2.2% lower from last week, while the number of traders net-short is 0.9% higher than yesterday and 10.4% higher from last week.
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Change in Net-Short Positions Encourage a 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.
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--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.