Net-Longs Decrease 9% Over the Past Week
Spot Gold: Retail trader data shows 80.0% of traders are net-long with the ratio of traders long to short at 4.01 to 1. The percentage of traders net-long is now its lowest since Nov 05 when it traded near 1230.99. The number of traders net-long is 7.3% lower than yesterday and 9.0% lower from last week, while the number of traders net-short is 8.1% higher than yesterday and 3.0% lower from last week.
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Gold Sentiment Prompts a Bullish Bias
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 Jake Schoenleb, DailyFX Research
