Gold Prices May Head Even Lower
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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 3.15 as 76% of traders are long. Yesterday the ratio was 3.00; 75% of open positions were long. Long positions are 3.4% higher than yesterday and 0.1% above levels seen last week. Short positions are 1.7% lower than yesterday and 9.1% above levels seen last week.
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.