Gold Price Outlook Turns Positive
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Spot Gold: Retail trader data shows 62.0% of traders are net-long with the ratio of traders long to short at 1.63 to 1. The percentage of traders net-long is now its lowest since Mar 31 when it traded near 1248.9. The number of traders net-long is 1.1% lower than yesterday and 11.3% lower from last week, while the number of traders net-short is 25.3% higher than yesterday and 45.2% 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.
See next article in this week’s report: AUDUSD - Australian Dollar Forecast Mixed, Next Move is Key