Sentiment is Shifting on Gold Prices
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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 1.46 as 59% of traders are long. Yesterday the ratio was 1.31; 57% of open positions were long. Long positions are 3.5% lower than yesterday and 22.5% below levels seen last week. Short positions are 13.3% lower than yesterday and 13.6% above levels seen last week. Open interest is 7.8% lower than yesterday and 11.6% 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 but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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