Gold: A 27% Fall in Weekly Short Positions Prompts a Bearish Bias
Over 80% of Retail Traders Remain Long
Spot Gold: Retail trader data shows 84.2% of traders are net-long with the ratio of traders long to short at 5.32 to 1. The number of traders net-long is 3.3% lower than yesterday and 6.6% lower from last week, while the number of traders net-short is 6.5% lower than yesterday and 27.6% lower from last week.
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The 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. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Spot Gold-bearish contrarian trading bias.
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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.