Spot Gold: Trend May Reverse Lower According to Sentiment
Number of Traders Net-Long Increased by 7.5% from Last Week
Spot Gold: Retail trader data shows 63.9% of traders are net-long with the ratio of traders long to short at 1.77 to 1. The number of traders net-long is 5.0% lower than yesterday and 7.5% higher from last week, while the number of traders net-short is 10.1% higher than yesterday and 1.0% higher from last week.
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Spot Gold: Recent Changes Suggest Mixed 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. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Spot Gold trading bias.
-Written by Tammy Da Costa, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.