Retail trader data indicates that 63.97% of traders are net-long, with a long-to-short ratio of 1.78 to 1. The number of traders holding long positions is 3.95% higher than yesterday and 36.52% higher than last week, while the number of traders holding short positions has increased by 6.68% from yesterday and decreased by 20.68% from last week.

We generally adopt a contrarian perspective to crowd sentiment, and the fact that traders are net-long suggests that Gold prices might continue to decline. The current positioning is less net-long compared to yesterday but more net-long compared to last week. This combination of current sentiment and recent changes provides a mixed outlook for Gold trading.

Over the past month, Silver has outperformed Gold, with the silver/gold spread returning to levels last seen in mid-November 2021. A break and close above the mid-October 2021 high would allow this spread to move higher.

Gold Market Outlook and Charts

May 29 2024

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