Hedge funds continued to sell gold with the net-short hitting fresh records. The 51% jump in the net-short was primarily driven by another jump in the gross-short to 153,596, also a record. A strong dollar, not least against the Chinese yuan, and a continued focus on rising US rates, robust US stocks, and a lack of inflationary pressures have all conspired to reduce gold’s appeal as a safe haven and diversification product.
The selling continued to be concentrated against gold with silver – despite it's being as weak as gold – seeing a 41% reduction in the net-short last week. The current net-short of just 6,678 lots is just 17% of the record set three months ago.