Gold Forecast to Continue Lower versus US Dollar
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XAUUSD - The ratio of long to short positions in the XAUUSD stands at 2.27 as 69% of traders are long. Yesterday the ratio was 2.08; 68% of open positions were long. Long positions are 6.2% higher than yesterday and 45.2% above levels seen last week. Short positions are 2.9% lower than yesterday and 22.8% below levels seen last week. Open interest is 3.2% higher than yesterday and 7.3% 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.
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