The Price of Gold May Continue to Fall
80.9% OF TRADERS ARE NET-LONG
Spot Gold: Retail trader data shows 80.9% of traders are net-long with the ratio of traders long to short at 4.25 to 1. The number of traders net-long is 0.1% higher than yesterday and 3.1% lower from last week, while the number of traders net-short is 27.5% lower than yesterday and 20.5% lower from last week.
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GOLD SENTIMENT SUGGESTS A STRONG BEARISH 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. 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.
--- Written by Nancy Pakbaz, CFA, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.