Gold Prices Outlook Calls for Further Weakness
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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 2.99 as 75% of traders are long. Yesterday the ratio was 2.92; 74% of open positions were long. Long positions are 0.3% lower than yesterday and 3.5% above levels seen last week. Short positions are 2.7% lower than yesterday and 7.0% above levels seen last week. Open interest is 0.9% lower than yesterday and 23.8% 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.
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