Gold: Prices May Continue to Fall
73.7% OF TRADERS ARE NET-LONG
Spot Gold: Retail trader data shows 73.7% of traders are net-long with the ratio of traders long to short at 2.8 to 1. The number of traders net-long is 3.9% higher than yesterday and 8.8% lower from last week, while the number of traders net-short is 3.6% higher than yesterday and 7.1% 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.