NUMBER OF TRADERS NET-SHORT HAS INCREASED BY 20.2% FROM LAST WEEK
Spot Gold: Retail trader data shows 60.8% of traders are net-long with the ratio of traders long to short at 1.55 to 1. The number of traders net-long is 8.5% higher than yesterday and 27.0% higher from last week, while the number of traders net-short is 0.7% higher than yesterday and 20.2% higher from last week.
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Spot Gold: Recent changes suggest 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 Tammy Da Costa, DailyFX Research