Gold’s sudden drop still hasn’t scared off commodity speculators. They remain at record levels and the market is massively net-long, according Citi’s Alan Heap in his latest December 18th ‘Commodity Heap’.Citi’s Alan Heap: Speculators Stay Long — Despite the recent USD strength, speculators have not liquidated positions in metals. Total LME open interest positions were largely stable since early December (Figures 8-11). COMEX non-commercial positions in gold and copper continue to increase (Figures 6-7).
The yellow line below represents the net long position, which remains at record levels.
[image url="http://static.businessinsider.com/image/4b2b83a60000000000e69913/image.jpg" link="lightbox" caption="" source="" alt="Gold" align="left" size="xlarge" nocrop="true" clear="true"]