Gold Prices Forecast to Fall to Fresh Lows
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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 4.02 as 80% of traders are long. Yesterday the ratio was 3.62; 78% of open positions were long. Long positions are 1.3% lower than yesterday and 4.0% above levels seen last week. Short positions are 11.1% lower than yesterday and 0.3% below levels seen last week.
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.