Hedge funds caught in bigger squeeze than 2021 meme stock frenzy – Goldman Sachs note

Reuters/Nell Mackenzie and Carolina Mandl/2-6-2023

“The latest short squeeze, implying that stock prices rose so much that bearish bets become too expensive to hold, saw hedge funds caught out by a sharp rally in equities on Feb. 2 after the U.S. Federal Reserve slowed the pace of interest rate hikes and markets anticipated that rates would peak soon.”

USAGOLD note: There is no way to know for certain, but perhaps the recent sell-off in gold was the result of hedge funds taking profits to cover losses in their short stock positions. Just a thought……….