The small speculator net long position has completely evaporated and even using the “futures & options combined” net positioning, small speculators are at their lowest net long positioning in over a decade. It is important to remember that commercials have an overwhelming tendency to be net short, whereas, speculators (particularly small specs) have a strong tendency to be positioned long.
This CoT report is quite significant because it clearly illustrates that the fast/dumb money small spec crowd has put on a sizable short bet in gold in recent weeks AFTER the gold price had tumbled over $200.
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