by Craig Hemke, Sprott Money:
Last week, we focused upon signals that might betray a PBOC effort to manage a lower price for COMEX gold. This week, let’s simply review the latest Commitment of Traders report on an absolute basis.
By any traditional sense, the positioning of Speculators and Banks in the COMEX gold market are at extremes that often precede price bottoms. The overriding question, though, is two-fold:
1. Is the People’s Bank of China intervening either directly or indirectly to “devalue” the dollar price of certain commodities at the same pace as they devalue the yuan versus the dollar in response to U.S. trade tariffs?
2. If this is the case, do traditional market metrics such as the Commitment of Traders report have any current significance?