Modest Positioning Suggests Gold Will Continue to Lose its Luster
Gold – The ratio of long to short positions in the XAUUSD stands at 1.08 as 52% of traders are long. Yesterday the ratio was 1.03; 51% of open positions were long. Long positions are 0.1% higher than yesterday and 1.5% above levels seen last week. Short positions are 4.4% lower than yesterday and 0.6% below levels seen last week. Open interest is 2.1% lower than yesterday and 3.3% 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.
--- Written by Christopher Vecchio, Currency Analyst
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