Gold Set to Rise Despite Bullish Sentiment
Spot Gold: Retail trader data shows 77.4% of traders are net-long with the ratio of traders long to short at 3.42 to 1. The number of traders net-long is 9.0% lower than yesterday and 5.8% lower from last week, while the number of traders net-short is 21.0% higher than yesterday and 3.5% 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.
--- Written by Dylan Jusino, DailyFX Research