5IG client data shows the retail crowd is betting against gold. Currently, 55.46% of traders hold net-short positions, resulting in a 1.25 to 1 short-to-long ratio. While this bearish positioning has remained largely unchanged since yesterday, it has increased by 6.15% from last week. Conversely, net-long positions have ticked up 4.14% since yesterday, even with a week-over-week decrease of 9.23%.
We often adopt a contrarian view of market sentiment. The predominantly bearish positioning could portend additional gains for the precious metal, meaning another all-time high could be in the cards before seeing any type of meaningful pullback.
Key Takeaway: When market sentiment leans heavily in one direction, contrarian cues can offer valuable insights. However, it's crucial to integrate these signals with thorough technical and fundamental analysis when formulating any trading strategy.
We often adopt a contrarian view of market sentiment. The predominantly bearish positioning could portend additional gains for the precious metal, meaning another all-time high could be in the cards before seeing any type of meaningful pullback.
Key Takeaway: When market sentiment leans heavily in one direction, contrarian cues can offer valuable insights. However, it's crucial to integrate these signals with thorough technical and fundamental analysis when formulating any trading strategy.