Gold Price Forecast Unclear, At Potential Cusp of Reversal
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Spot Gold: Retail trader data shows 73.3% of traders are net-long with the ratio of traders long to short at 2.75 to 1. The number of traders net-long is 4.1% lower than yesterday and 14.6% lower from last week, while the number of traders net-short is 6.5% higher than yesterday and 15.8% higher 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Spot Gold price trend may soon reverse higher despite the fact traders remain net-long.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.