Gold fell almost 2% overnight and yet again reinforces the wisdom of not going with the crowd. With record long positions held by hedge funds, pension funds, money managers and retail investors, gold was primed to fall against this almost fever pitch of buying.
On the other side of the speculators, there was a record number of short positions held by what is classed as Commercials. They are the companies that dig gold out of the ground and sell it for a profit.
On one side you have a group of people who are speculating. On the other it is simply a business decision.
Given that the speculators are almost always long at the top and short at the bottom, the emotionless Commercials have the right strategy.