The Dumb Money Piles on Bearish Gold Bets

“Dumb money” futures traders (small speculators) piled on bearish bets in gold futures during the week ending August 4th:



Small specs increased their net bearish position in gold futures by more than 50% in a single week! The net notional short position of small specs has now reached over $1.6 billion, another all-time record.

As a rational observer I think it is quite notable that the group of speculators who are most often positioned exactly wrong have accumulated a record net short position as gold futures plumb fresh 5-year lows.