Gold Forecast Once Again Points to Losses

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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 1.21 as 55% of traders are long. Yesterday the ratio was -1.07; 48% of open positions were long. Long positions are 8.7% higher than yesterday and 1.5% below levels seen last week. Short positions are 15.9% lower than yesterday and 2.4% below levels seen last week. Open interest is 4.0% lower than yesterday and 5.8% 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 flipped from net-short to net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further bearish trading bias.