NET-SHORT POSITIONS INCREASED BY 14% FROM LAST WEEK.
Spot Gold: Retail trader data shows 73.0% of traders are net-long with the ratio of traders long to short at 2.71 to 1. The number of traders net-long is 7.6% lower than yesterday and 4.7% lower from last week, while the number of traders net-short is 9.8% higher than yesterday and 14.0% higher from last week.
To gain more insight in how we use sentiment to supplement a strategy, join us for one of our weekly webinars on how to “Identify Trends with Sentiment”:
(click on one of the above times to enroll)
Change in Positioning Favors Potential Reversal
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 Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX