Gold Price Tumbles – How Much Further to Go?
Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.
Spot Gold: Retail trader data shows 83.6% of traders are net-long with the ratio of traders long to short at 5.1 to 1. The number of traders net-long is 0.7% higher than yesterday and 19.1% higher from last week, while the number of traders net-short is 2.8% lower than yesterday and 4.8% 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.
See next article in this week’s report: AUDUSD - Australian Dollar May be a Sell versus US Dollar
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.