Gold is currently stabilizing after significant selling pressure. Commodity Trading Advisors (CTAs) are starting to buy, while Exchange-Traded Funds (ETFs) are holding steady. Meanwhile, macro funds still have short positions. The heavy selling in gold seems to be slowing down, suggesting a possible rise in prices. CTAs may be ready to increase their long positions, especially since range-bound trading reduces selling triggers that have impacted prices before. Right now, gold prices indicate that CTAs have a good safety margin before hitting the next selling point below $3,130 per ounce. Outflows from Chinese ETFs have stopped, leading to healthy inflows again. The short positions taken by macro funds seem to stem from a strategy focused on the U.S. dollar. Gold is now facing selling pressure around $3,320 due to the market’s response to recent U.S. economic reports and the Federal Reserve’s interest rate plans. Additionally, currency pairs like EUR/USD and GBP/USD are being swayed by the strength of the dollar and various economic updates. Signs suggest that the intense selling of gold has ended and a bottom may have formed. CTAs have shifted from selling to buying, adding about 25,000 contracts last week. This change hints that downward pressure is easing. ETF holdings have stopped declining, providing stability in the market. Data from early July 2025 shows Chinese gold ETFs have returned to net inflows of over 15 tonnes, reversing earlier losses. This renewed demand from a significant market is strengthening price support. With selling seeming to be at an end, it might be a good time to buy call options, anticipating a price increase. The current price around $3,250 per ounce gives a safe cushion above the next major selling trigger below $3,130. This setup offers an attractive risk-reward ratio for bullish positions. We need to monitor for selling pressure as gold nears the $3,320 resistance level, which will test the market’s strength. Traders are evaluating the U.S. Consumer Price Index (CPI) data for June 2025, which came in slightly lower than expected at 3.1%. This has led futures markets to lower the chances of another Federal Reserve rate hike this year, which might weaken the dollar and allow gold to break through. The short positions held by macro funds appear to reflect a belief in a strong U.S. dollar rather than a negative outlook for gold. This dollar strength is evident with EUR/USD testing the 1.0700 level and GBP/USD near 1.2500. This situation is reminiscent of late 2024, when gold consolidated under the strength of the dollar before making a breakout to new highs.

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