What the gold price is telling traders | the trade

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Kyle Rodda from IG joins Kara for a sentiment special and to discuss key levels for gold, dollar index (DXY), and crude oil. In a very unusual move for early Asian trade, gold crashed over 4.0% this morning. Retail trader data shows 81.59% of traders are net-long with the ratio of traders long to short at 4.43 to 1, he says. The number of traders net-long is 0.14% lower than yesterday and 1.19% lower from last week, while the number of traders net-short is 17.91% higher than yesterday and 2.90% lower from last week. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests 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 Gold trading bias. Click to find out how traders are positioned in DXY ahead of the key set of US numbers this week.


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