Gold:79% of Traders Are Net-Long
NUMBER OF NET-LONG TRADERS ARE 15% HIGHER FROM LAST WEEK
Spot Gold: Retail trader data shows 79.0% of traders are net-long with the ratio of traders long to short at 3.77 to 1. The number of traders net-long is 0.2% lower than yesterday and 15.0% higher from last week, while the number of traders net-short is 8.1% lower than yesterday and 23.6% lower from last week.
GOLD SENTIMENT CONTINUES TO SUGGEST A BEARISH TRADING 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.
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--- Written by Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.