Gold: 71.1% of Traders Are Net-Long
TRADERS REMAIN NET-LONG
Spot Gold: Retail trader data shows 71.1% of traders are net-long with the ratio of traders long to short at 2.46 to 1. The number of traders net-long is 9.5% lower than yesterday and 6.0% lower from last week, while the number of traders net-short is 3.9% higher than yesterday and 2.5% higher from last week.
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SPOT GOLD DIRECTION REMAINS UNCLEAR
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.