76% of Traders are Net-Long
Spot Gold: Retail trader data shows 76.5% of traders are net-long with the ratio of traders long to short at 3.26 to 1. The number of traders net-long is 1.8% lower than yesterday and 5.5% lower from last week, while the number of traders net-short is 7.6% lower than yesterday and 17.8% higher from last week.
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Gold Sentiment is Unable to Provide a Clear Direction
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Spot Gold trading bias.
--- Written by Fan Xu, DailyFX Research