Long equity investors (GDX) are holding firm despite a 36% drop, while long commodity investors (GLD) are actively unwinding, reducing their float by 10%.

Short sellers are aggressively piling into both instruments, with GLD short interest spiking 80% and GDX is up 50% as both instruments decline.

GLD shorts make up only 3% of the ETF, meaning short sellers cannot move the price. Conversely, GDX is much more crowded and faces short-squeeze risk.

• GLD short interest has spiked 80% recently after ETF sold off 25% since the high. The increase is 10MM shares.

• GDX is down 36%, with short interest up 50% recently. The long interest is about the same.

• Gold is down because investors are retreating from the debasement trade as the Federal Reserve hints at potential rate hikes rather than cuts.

• Higher Rates: Rising interest rates make non-yielding gold less attractive than Treasuries.

• Bubble Unwinding: Prices are correcting after a surge that peaked in January 2026.

• Liquidity Selling: Investors are selling gold to raise cash amid broader global market shocks.

• ETF Outflows: Traders are cashing out of gold ETFs to capture previous gains.

• GLD Float (Long Interest) is down 10% as long investors have been selling, 30MM shares.

• To summarize the flow of funds: GLD short interest is up 80%, float is down 10%. GDX short interest is up 50% with no change in long exposure.

• So long equity investors are holding tight, while long commodity investors are net sellers. Shorts are piling onto both.

• GLD shorts are only 3%, so they cannot move the ETF. GDX short interest is larger and can make the difference.

• GLD short interest is never crowded because it is so small. GDX is more crowded and does face squeeze risk.

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