Gold Price May Fall as Traders are Further Net Long
Why and how do we use IG Client Sentiment in trading? See our guide.
Spot Gold: Retail trader data shows 84.9% of traders are net-long with the ratio of traders long to short at 5.61 to 1. The number of traders net-long is 4.1% lower than yesterday and 11.4% higher from last week, while the number of traders net-short is 4.4% lower than yesterday and 27.5% 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. 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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.