Gold prices fell about -0.6 percent over the past 24 hours as financial markets continued digesting the aftermath and implications of the Federal Reserve interest rate decision. In response, retail traders have increased bullish exposure in the precious metal. This can be seen by looking at IG Client Sentiment (IGCS), which often functions as a contrarian indicator.
Gold Sentiment Outlook – Bearish
The IGCS gauge shows that about 74% of retail traders are net-long gold. Since most are biased to the upside, this things that prices may continue falling down the road. Meanwhile, upside bets have increased by 8.02% and 5.9% compared to yesterday and last week, respectively. With that in mind, the combination of overall positioning and recent changes produces a stronger bearish contrarian trading bias.