Number of Traders Net-Long Increased by 6.9% from Last Week
Spot Gold: Retail trader data shows 71.4% of traders are net-long with the ratio of traders long to short at 2.5 to 1. The percentage of traders net-long is now its highest since May 27 when it traded near 1285.19. The number of traders net-long is 1.3% higher than yesterday and 6.9% higher from last week, while the number of traders net-short is 10.4% lower than yesterday and 7.3% lower from last week.
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Spot Gold: Sentiment Suggests Stronger 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