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A Comparative Study of Deep Reinforcement Learning Agents for Gold Trading with Technical Indicators and LLM-Filtered News Sentiment
Author(s)
Date Issued
June 16, 2026
Type
Conference Paper
Abstract
Integrating macroeconomic news into deep reinforcement learning (DRL) for daily gold (XAU/USD) trading remains challenging. This study implements a natural language processing pipeline using majority voting from three large language models (Llama-3.1-8B-Instruct, Qwen3-8B, and Gemma-3-12B-it) to filter articles from The New York Times from 2010 to 2024, yielding 592 relevant articles that are subsequently assigned sentiment scores using FinBERT. We evaluate A2C, PPO, and SAC agents in a FinRL and Stable-Baselines3 framework using a four-fold walk-forward expanding-window protocol and Optuna hyperparameter tuning. The models are compared under two feature settings: (1) six technical indicators only and (2) technical indicators combined with sentiment features. Results show that incorporating LLM-filtered sentiment can modestly improve trading performance for some agents. PPO with sentiment achieves the best average cumulative return (10.05%) and Sharpe ratio (0.74), compared with its indicator-only version (9.80%, 0.72), and slightly outperforms the Buy-and-Hold (B&H) baseline (9.58%, 0.71). A2C also improves with sentiment (9.50% to 9.90%), while SAC shows no improvement in this setting. These findings suggest that LLM-filtered sentiment provides a modest benefit for some DRL agents in daily gold trading in our experiments.
Citation
Iait 2026 14th International Conference on Advances in Information Technology, 2026