Gold Trades Mixed Based On Sentiment
Spot Gold: Retail trader data shows 79.9% of traders are net-long with the ratio of traders long to short at 3.98 to 1. The number of traders net-long is 1.1% higher than yesterday and 2.8% lower from last week, while the number of traders net-short is 14.5% higher than yesterday and 3.6% 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. The combination of current sentiment and recent changes gives us a further mixed Spot Gold trading bias.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.