Gold: They Dumped $20 Billion. Then Gold Exploded
From panic to squeeze
Gold is back with a vengeance after a brutal positioning washout. Nearly $20 billion in speculative selling, sizeable CTA shorts and a surge in downside hedging had set the stage for a violent squeeze. Meanwhile, falling oil prices, dollar weakness and renewed Chinese demand are providing additional support. Beyond the short-term positioning reset, a new structural gold buyer is emerging in the form of Tether, now one of the world's largest physical accumulators. The squeeze has been impressive, but is this the beginning of something bigger? The technicals still have some work to do.