The Last Time Hedge Funds Were This Short Gold, It Rallied 18% In A Month

Gold is suffering its worst drawdown this year, and hedge funds are betting more losses are in store… but judging by the precious metals’ performance the last two times hedgies piled in like this, the ‘smart money’ may be about to get a nasty surprise…

As Bloomberg notes, signs that global central banks, including the Federal Reserve, are moving closer to unwinding economic stimulus helped boost bearish bets on the metal to the highest in almost 18 months.