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The latest readings from the Speculative Sentiment Index (SSI) confirm your bearish outlook for gold (XAU/USD).
SSI for XAU/USD stands at 1.27 (meaning there are 1.27 long positions for each short position) as 56% of traders are long. Yesterday the ratio was 1.01; 50% of open positions were long. Long positions are 11.0% higher than yesterday and 24.7% above levels seen last week. Short positions are 12.0% lower than yesterday and 19.2% below levels seen last week.
Open interest is 0.5% lower than yesterday and 3.9% above its monthly average. SSI is a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that XAU/USD may continue lower. The trading crowd has grown further net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
