Gold bulls may have to wait a bit longer for the great short squeeze

After investors collectively placed the biggest gold short on record, traders have been waiting for the tide to turn — potentially in a dramatic fashion. But the rally on Friday may not be the short squeeze the bulls had been waiting for.

Bullion futures rebounded as dovish Federal Reserve comments were seen weakening the dollar. But momentum is already showing signs of abating, with holdings in exchange-traded funds backed by the metal extended losses to the lowest since 2016. Still, futures for December delivery were up 0.3 per cent to $1,216.70 an ounce at 10:20 am in New York