Gold: Weekly Short Positions Drop 12%

Gold: Weekly Short Positions Drop 12%

82% of Retail Traders are Net-Long

Spot Gold: Retail trader data shows 82.2% of traders are net-long with the ratio of traders long to short at 4.63 to 1. The number of traders net-long is 6.8% lower than yesterday and 3.0% lower from last week, while the number of traders net-short is 5.1% higher than yesterday and 12.1% lower from last week.

To gain more insight to how we use sentiment to power our trading, join us for our weekly Trading Sentiment webinar.

Sentiment Unable to Provide a 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 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.

Recommended Reading: Weekly CoT Sentiment Update for Major FX, Commodities, and Indices

— Written by Jake Schoenleb, DailyFX Research

Article source: https://www.dailyfx.com/forex/technical/ssi/xau-usd/2018/10/26/ssi_xau-usd.html