Gold Price Forecast to Fall Further on Key Sentiment Shift
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Spot Gold: Retail trader data shows 80.9% of traders are net-long with the ratio of traders long to short at 4.23 to 1. The number of traders net-long is 4.3% lower than yesterday and 18.3% higher from last week, while the number of traders net-short is 1.3% higher than yesterday and 38.7% 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. We nonetheless view that the broader shift towards Gold buying gives clear contrarian signal that Gold Prices may continue lower.
See next article in this week’s report: AUDUSD - Australian Dollar Forecast may Shift Given Key Change in Sentiment
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