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    CFTC gold net positions in the United States reached $234K and $223.9K, respectively.

    by VT Markets
    /
    Dec 29, 2025
    The United States Commodity Futures Trading Commission (CFTC) has reported an increase in gold net positions. The new figure stands at 234,000, up from the previous 223,900. This information reflects shifts in the futures market for gold, providing insight into how interested market participants are in commodities trading during this time.

    Gold Market Confidence Rises

    The latest CFTC data on gold positions shows a clear trend. Speculators have raised their net long holdings to 234,000 contracts, from around 224,000. This indicates growing confidence that gold prices are likely to rise. This change aligns with market expectations that the Federal Reserve may start cutting interest rates in the first quarter of 2026. According to the CME FedWatch Tool, there’s now almost a 70% chance of a rate cut by March, a significant change from just a month ago. Lower interest rates make holding non-yielding gold more appealing, as they reduce the cost associated with holding it. We should also consider the ongoing inflation that affected much of 2025. The Consumer Price Index (CPI) for November showed inflation at 3.4%, slightly above what experts expected. This persistent inflation is likely prompting the Fed to adopt a more cautious approach to prevent a severe economic downturn. Traders are positioning themselves for gold to serve as a reliable hedge if inflation stays high, even as economic growth slows.

    The Rate Cutting Cycle and Gold Prices

    Looking back at the rate-cutting cycle that started in mid-2019, gold prices significantly increased over the next year. A similar scenario may happen as we approach 2026. For traders dealing in derivatives, buying call options with expiration dates in the second quarter of 2026 could be a way to gain exposure to potential upside while managing risk. Create your live VT Markets account and start trading now.

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