Gold: 74.9% of Traders Are Net-Long
NET-SHORT POSITIONS INCREASED BY 19.3% FROM LAST WEEK
Spot Gold: Retail trader data shows 74.9% of traders are net-long with the ratio of traders long to short at 2.99 to 1. The number of traders net-long is 4.1% higher than yesterday and 6.9% higher from last week, while the number of traders net-short is 6.9% higher than yesterday and 19.3% higher from last week.
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GOLD: SENTIMENT WARNS THAT PRICE TREND 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.