Gold: Traders Remain Net-Long
74.7% OF TRADERS ARE NET-LONG
Spot Gold: Retail trader data shows 74.7% of traders are net-long with the ratio of traders long to short at 2.96 to 1. The number of traders net-long is 0.8% higher than yesterday and 1.1% higher from last week, while the number of traders net-short is 20.2% higher than yesterday and 15.0% higher from last week.
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SPOT GOLD PRICE MAY SOON REVERSE
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 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.