Gold Prices Forecast to Fall Further

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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 1.33 as 57% of traders are long. Yesterday the ratio was 1.61; 62% of open positions were long. Long positions are 9.4% lower than yesterday and 4.4% below levels seen last week. Short positions are 9.9% higher than yesterday and 11.7% below levels seen last week. Open interest is 2.0% lower than yesterday and 4.5% 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 less net-long from yesterday but further long since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.