Gold: Weekly Short Positions Fall 29% Sparking a Bearish Bias
89% of Retail Traders are Net-Long
Spot Gold: Retail trader data shows 89.5% of traders are net-long with the ratio of traders long to short at 8.52 to 1. The number of traders net-long is 5.7% higher than yesterday and 11.4% higher from last week, while the number of traders net-short is 10.3% lower than yesterday and 29.7% lower from last week.
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Sentiment Suggests Gold Prices May Fall
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.
Recommended Reading: Weekly CoT Sentiment Update for Major FX, Commodities, and Indices
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.