Gold Sentiment Suggests a Bullish Bias Despite Net-Long Positions
Net-Short is 15% Higher
Spot Gold: Retail trader data shows 76.8% of traders are net-long with the ratio of traders long to short at 3.31 to 1. The number of traders net-long is 0.5% higher than yesterday and 5.5% lower from last week, while the number of traders net-short is 5.0% higher than yesterday and 15.0% higher from last week.
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Gold Price May Rise in Near-term
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.
--- Written by Fan Xu, DailyFX Research