Once I looked at what the commercial hedgers did last week I had to post something. Last week the commercials added some of the most bearish positions in gold that I have seen.
Sure gold can go higher as the speculators are the true trend chaser!
This record goes back to June 2018 with a huge commercial short position and speculators having a huge long position. It’s impossible for both groups to be right at the same time.
From my experience, it’s the speculators that are the trend chasers and usually the first people to panic when they find out that they are wrong. All it takes is one group to see the set-up at the same time. A large group or a small group matters little as small panics happen all the time.
One strong drop in the gold price can send the speculators into sheer panic as they try and squirm their way out of a bull trap.