There’s a ‘controversy’ brewing in gold market: Goldman Sachs

First of all, even as gold has dropped, “shares outstanding for GDX and GDXJ have risen by 11 percent in the past month,” indicating that more money is flowing into the space. Indeed, precious metals ETFs saw their fourth straight week of inflows in the week ended May 25, according to Thomson Reuters.

Another indicator of bullish sentiment comes from the options market, where investors appear to have “increased upside exposure” to GDX and GDXJ, based on a comparison between how puts and calls are trading.

On the other side of the coin, the ranks of those betting against the ETF appears to have risen, based on “an unusually high level of short interest.”

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