Gold Price Forecast to Rally Further on Trader Sentiment
Why and how do we use IG Client Sentiment in trading? See our guide.
Spot Gold: Retail trader data shows 77.5% of traders are net-long with the ratio of traders long to short at 3.44 to 1. The number of traders net-long is 4.9% lower than yesterday and 18.4% lower from last week, while the number of traders net-short is 3.8% lower than yesterday and 33.1% 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.