The Commodity Futures Trading Commission (CFTC) has noted a drop in gold net positions in the U.S., falling to $223.6K from $253K. This information is important for understanding trends in the gold market and recent trading activities. In the foreign exchange market, the EUR/USD rose above 1.1550 after weaker than expected U.S. Nonfarm Payrolls and ISM Manufacturing PMI data led to increased selling of the U.S. dollar. Meanwhile, GBP/USD bounced back, trading above 1.3250 due to disappointing U.S. economic reports.

Gold Market Dynamics

The gold market experienced an upswing, with prices hitting a weekly high of around $3,350. This increase was linked to dropping U.S. Treasury bond yields, leading investors to rethink the Federal Reserve’s approach to interest rates after weak payroll numbers. In the cryptocurrency market, strong selling pressure returned after a bullish July, where Bitcoin and several altcoins saw significant gains. Bitcoin prices fell below $115,000 as sellers targeted support at $112,000, resulting in rising liquidations. In the Eurozone, economic resilience surprised many, supported by the EU-U.S. deal and increased German spending. However, there are still risks of a potential rate cut, depending on future wage trends and economic indicators. Gold prices have risen to around $3,350 an ounce, yet large speculators have reduced their net long positions to $223.6K. This difference suggests that while the market reacts to weak U.S. economic data, some savvy investors might be taking profits at these peaks. We’ll keep an eye on whether this rally can keep going or if it becomes a bull trap.

Dollar Weakness And Opportunities

The U.S. dollar is facing significant challenges after the July 2025 Nonfarm Payrolls report showed only 95,000 new jobs, far less than the expected 180,000. As a result, the market has raised the likelihood of a Federal Reserve rate cut in September. Fed funds futures now indicate a 55% chance, up from just 20% last week. We can expect further dollar weakness against major currencies in the coming weeks. With the dollar weakening, there are opportunities to go long on the euro and the pound. The EUR/USD breaking above 1.1550 is a strong bullish sign, although we need to be cautious about a potential rate cut in the Eurozone, which could limit gains if upcoming wage data disappoints. The outlook for GBP/USD above 1.3250 seems clearer, making it a potentially better trade as we prepare for a softer dollar. In the crypto market, momentum has shifted significantly after a strong July. Bitcoin has fallen below $115,000, with over $500 million in leveraged long positions liquidated in just 48 hours. This aggressive selling is reminiscent of sharp pullbacks seen during the 2024 market cycle, suggesting we should be careful and wait for support at $112,000 to hold before considering new investments. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now