By Hedge funds slashed bullish gold bets by 23% in the week to April 26 – the fastest pace since 2021 – as revealed in exclusive analysis of CFTC and LME data. The rapid unwind of leveraged positions ahead of Monday’s decline indicates institutional traders foresaw the correction.
Positioning Shifts:
- COMEX Contracts: Net longs cut by 42,000 lots (worth $9.6B)
- Options Activity: Put buying spikes 300% at $2,300 strike
- Physical Flows: London gold stocks drop for first time in 90 days
Hedge Fund Strategies:
- Macro Funds: Rotating into copper/aluminum
- CTA Trend Followers: Algorithmic selling triggered at $2,350
- Volatility Traders: Shorting gold/silver ratio
Institutional Moves:
- Bridgewater doubles gold ETF shorts
- Paulson & Co takes profits on 8-year position
- BlackRock shifts to cash-secured puts