Gary Holland 8/15/2018

Large Speculators (i.e. CTA’s and Hedge Funds = Trend-followers) as categorised by the CFTC hold an all-time
record Net-Short position in Gold. At the same time the Commercials (i.e. Producers, Processors, Merchants =
Hedgers) are on the opposite side of this position.
Trend-following can, within the framework of a broad portfolio of markets, be a profitable strategy but it is also a
strategy that will see its adherents holding large positions at market turns.
This sentiment doesn’t preclude Gold from weakening further but combined with what appears to be capitulation
like sell-off in yesterday’s trade, it does place a stiff headwind in front of any further weakness and leaves prices
vulnerable to a reversal of the downside.

See Attached: Trendfollowers hold record net Short Gold position Aug 14 2018