Gold Forecast Points to Further Losses

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Spot Gold: Retail trader data shows 78.0% of traders are net-long with the ratio of traders long to short at 3.55 to 1. The number of traders net-long is 3.2% higher than yesterday and 3.6% higher from last week, while the number of traders net-short is 15.3% higher than yesterday and 1.7% lower from last week.

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.