Gold Prices Expected to Resume Broader Downtrend
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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 1.65 as 62% of traders are long. Yesterday the ratio was 1.20; 55% of open positions were long. Long positions are 60.1% higher than yesterday and 20.9% above levels seen last week. Short positions are 16.6% higher than yesterday and 60.8% above levels seen last week. Open interest is 40.3% higher than yesterday and 25.2% 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 but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.