Gold Prices Likely to Remain Stuck in Downtrend
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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 3.88 as 80% of traders are long. Yesterday the ratio was 3.59; 78% of open positions were long. Long positions are 3.1% higher than yesterday and 6.4% above levels seen last week. Short positions are 4.9% lower than yesterday and 6.6% below levels seen last week. Open interest is 1.3% higher than yesterday and 7.5% 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 and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.