Editor's note: Originally published at tsi-blog.com on Aug. 17.
Gold market sentiment is complicated at the moment. There are signs of speculative froth, but at the same time the total speculator net-long position in Comex gold futures is close to its low for the year despite the US$ gold price recently hitting an all-time high. A likely explanation is that large speculators are focusing more on gold ETFs than on gold futures.
The price of a gold ETF that holds physical gold will track the gold price automatically. Therefore, there never will be an increase