Gold’s Lackluster Performance Sees Shorts Wind down Positions for 2015
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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 2.62 as 72% of traders are long. Yesterday the ratio was 2.05; 67% of open positions were long. Long positions are 7.1% higher than yesterday and 9.5% above levels seen last week. Short positions are 16.4% lower than yesterday and 16.3% below levels seen last week. Open interest is 0.6% lower than yesterday and 6.7% below 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.
See next currency section: EUR/USD – Crowd Still Hesitant to Let Go of Net-Short EUR/USD Position
--- Written by Christopher Vecchio, Currency Strategist
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