Gold Demand Is All Speculative

Earlier we noted a worrisome sign for bulls: On-net, all speculation is on the long side. There are virtually no portfolio managers willing to go against gold.

Here’s another bad sign according to RBC (via FT Alphaville and Pragcap). Speculative positions on COMEX are spiking, while gold under ETF management is flat.

The weak physical demand for gold combined with the rapid rise in the speculative activity could give rise to a sharp correction, especially if the US dollar rallies.

gold etf

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