The Commodity Futures Trading Commission (CFTC) has reported that U.S. gold net positions rose from $223,600 to $237,100. This change shows an increasing interest in gold trading within the market. The EUR/USD exchange rate climbed above 1.1650 as traders await upcoming U.S. inflation data. The British Pound bounced back near 1.3450, largely due to the Bank of England’s (BoE) recent decision to take a hawkish stance.

Gold In Focus

Gold is currently stable near $3,400 per troy ounce after reaching highs above $3,410. The U.S. has introduced taxes on one-kilo and 100-ounce gold bars, adding to the complexity around gold trading. In the cryptocurrency realm, Bitcoin peaked at around $118,000 before dropping to $116,525. Overall market sentiment remains bullish, with both institutional and retail investors showing strong interest. The Bank of England reduced interest rates by 25 basis points, bringing the rate down to 4%. This measure reflects concerns about inflation surpassing the target, fitting into broader economic discussions. Traders interested in the EUR/USD market should look for brokers that provide competitive spreads and quick execution. These services cater to both novices and seasoned Forex traders.

Speculative Trends

Speculative interest in gold is on the rise, with net long positions now valued at $237.1 billion. With gold stable near $3,400, it’s important to watch how the new U.S. taxes on larger gold bars might shift demand towards smaller options or futures contracts. Given that U.S. inflation for July 2025 is steady at 3.8%, gold’s role as a hedge is strong, especially if the Federal Reserve keeps interest rates on hold. The EUR/USD is testing the 1.1650 mark, but we think this minor recovery is vulnerable ahead of the next U.S. inflation report. The European Central Bank has indicated a more lenient approach as Eurozone inflation has cooled to 2.5%, highlighting a policy gap compared to the more aggressive Federal Reserve. We should be alert for a higher-than-expected U.S. inflation rate that could wipe out these recent gains in the currency pair. The British Pound bounced from 1.3450 following the BoE’s recent actions. Although the BoE cut its rate to 4%, this was seen as a “hawkish cut” due to UK inflation remaining high at 4.5%, limiting the bank’s ability to ease further. Reflecting on the high-inflation period of 2022-2023, we noted that central banks acting too slowly were forced to make more aggressive moves later, a risk that should be considered for the pound’s future. Bitcoin’s slight decline to $116,525 seems like a healthy pause rather than a sign of a downward trend. This optimism is supported by strong data, with over $5 billion in net inflows to spot Bitcoin ETFs in July 2025 alone. This ongoing institutional buying, which has been steadily increasing since the initial approvals in 2024, shows that larger traders see Bitcoin as a maturing asset. Create your live VT Markets account and start trading now.

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