Gold Price Likely to Continue even Lower
XAUUSD – The ratio of long to short positions in the XAUUSD stands at 3.33 as 77% of traders are long. Yesterday the ratio was 3.33; 77% of open positions were long. Long positions are 0.2% lower than yesterday and 4.9% above levels seen last week. Short positions are 0.2% lower than yesterday and 3.5% below levels seen last week. Open interest is 0.2% lower than yesterday and 15.1% above its monthly average.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the XAUUSD may continue lower. The trading crowd has grown further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.