Gold: Weekly Short Positions Grow 13.5%
Net-Shorts Increase Over Past Week
Spot Gold: Retail trader data shows 79.9% of traders are net-long with the ratio of traders long to short at 3.97 to 1. The percentage of traders net-long is now its lowest since Sep 30 when it traded near 1191.41. The number of traders net-long is 6.6% lower than yesterday and 11.3% lower from last week, while the number of traders net-short is 15.8% higher than yesterday and 13.5% higher from last week.
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Sentiment Warns of Potential Bullish Reversal
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: Weekly CoT Sentiment Update for Major FX, Commodities, and Indices
--- Written by Jack Schwarze, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.