More Downside in Gold Eyes as Sentiment Remains Bearish
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Spot Gold: Retail trader data shows 79.4% of traders are net-long with the ratio of traders long to short at 3.86 to 1. The number of traders net-long is 1.0% lower than yesterday and 15.1% higher from last week, while the number of traders net-short is 3.1% lower than yesterday and 15.1% 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.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
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