Spot Gold: Retail trader data shows 77.9% of traders are net-long with the ratio of traders long to short at 3.53 to 1. The number of traders net-long is 10.0% lower than yesterday and 0.6% lower from last week, while the number of traders net-short is 12.8% lower than yesterday and 27.5% 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 Dylan Jusino, DailyFX Research