TRADERS REMAIN NET-LONG
Spot Gold: Retail trader data shows 76.9% of traders are net-long with the ratio of traders long to short at 3.32 to 1. The number of traders net-long is 2.6% higher than yesterday and 7.5% higher from last week, while the number of traders net-short is 15.7% lower than yesterday and 17.9% lower from last week.
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Gold SENTIMENT SUGGESTS 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.
--- Written by Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX