Gold May Reverse Based on Key Shift In Sentiment
Spot Gold: Retail trader data shows 72.7% of traders are net-long with the ratio of traders long to short at 2.66 to 1. The number of traders net-long is 10.0% lower than yesterday and 21.1% lower from last week, while the number of traders net-short is 4.4% higher than yesterday and 20.8% 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
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