Retail Traders Shift to Bearish Stance as Gold Prices Decline

Gold prices experienced a nearly 0.7 percent decline on Monday, marking their worst 24-hour performance in over a month. As a response, retail traders reduced their bearish positions. This shift in sentiment is evident when examining IG Client Sentiment (IGCS), which often serves as a contrarian indicator. Given these developments, it raises the question of whether more negative price movements are on the horizon for gold.

Gold Sentiment Analysis - Bearish
The IGCS data reveals that approximately 71% of retail traders are currently net-long on gold. Since a majority of them maintain a bullish bias, this suggests that there may be continued downside potential for gold prices. Notably, there has been a 9.17% reduction in downside exposure compared to yesterday and a 3.69% decrease compared to last week. Taking into account the combination of the overall sentiment and recent changes, a stronger bearish contrarian trading outlook emerges.

GOLD SELL LIMIT 1928 - 1930🔽🔽

🟢TP1 : 1923
🟢TP2: 1918

🔴SL: 1935