GOLD: Increased Divergence Between Net-Longs and Net-Shorts Extends Short Bias
Spot Gold: Retail trader data shows 80.0% of traders are net-long with the ratio of traders long to short at 3.99 to 1. The number of traders net-long is 9.8% higher than yesterday and 16.5% higher from last week, while the number of traders net-short is 3.7% higher than yesterday and 23.5% lower from last week.
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Gold Sentiment Suggests a Bearish 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.
