Nearly 20% Increase in Net-Short Traders
Spot Gold: Retail trader data shows 83.7% of traders are net-long with the ratio of traders long to short at 5.15 to 1. The number of traders net-long is 5.8% higher than yesterday and 6.0% lower from last week, while the number of traders net-short is 15.7% lower than yesterday and 19.6% higher from last week.
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Sentiment Suggests No Clear Direction
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 more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Spot Gold trading bias.
Recommended Reading: Weekly CoT Sentiment Update for Major FX, Commodities, and Indices
— Written by Jack Schwarze, DailyFX Research