At present, the pricing power of global gold is dominated by American and European markets, and the international gold price is mainly formed by the gold contracts of two major exchanges: COMEX (the New York Mercantile Exchange) gold futures and LBMA (London Gold and Silver Market Association) spot gold prices. Among them, COMEX gold in the United States has the strongest influence on the pricing power of gold in the world. Although the spot gold trading volume of Shanghai Gold Exchange ranks first in the world, its pricing discourse power is almost zero and can be ignored.

Thanks to the weekly COT position report issued by the Commodity Futures Trading Commission (CFTC), we can get a glimpse of the emotional changes of hedge funds in the COMEX gold market.

However, the trend of "commercial short" (blue line) in the COT report is completely opposite to that of gold price. Commercial positions are generally positions of gold suppliers, demanders, gold mining companies, etc. Countries with safe-haven demand for gold. In commercial positions, empty orders are higher than multiple orders for a long time. Among them, CFTC regards the hedging of index funds in the futures market as a commercial hedging behavior, which belongs to the category of commercial positions. The commodity investment of index funds is only long and not short, so it needs to be sold and hedged in the futures market.