"Downward pressure on gold continues and we are now back to levels post the mid-April selloff," said UBS's Edel Tully in a note titled Gold Shorts Dominate. "Investor sentiment remains negative as highlighted by the persistence of ETF selling and the extension of speculative shorts to an all-time high."

Check out the chart to the right.

"The gross short position in gold now sits at a record 14.3moz, nearly double the levels at the beginning of the year," added Tully. "Meanwhile, gold gross longs declined for a fifth consecutive week to 21.3moz, representing a 21% decline year-to-date."