Gold Forecast Neutralizes After Surge in Crowd Short Positioning
Gold - The ratio of long to short positions in the XAUUSD stands at -1.00 as 50% of traders are long. Yesterday the ratio was -1.07; 48% of open positions were long. Long positions are 3.7% higher than yesterday and 19.6% below levels seen last week. Short positions are 2.7% lower than yesterday and 39.9% above levels seen last week. Open interest is 0.4% higher than yesterday and 6.3% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the XAUUSD may continue higher. The trading crowd has grown less net-short from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by Christopher Vecchio, Currency Strategist
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