CFTC reports decrease in US gold net positions to $165.6K from $205.4K

    by VT Markets
    /
    Feb 7, 2026
    The CFTC in the United States reports a decrease in gold net positions. The current net positions are at $165.6K, down from the previous $205.4K. This change reflects shifts in investment behavior.

    Gold Market Dynamics

    Large speculators have significantly reduced their net bullish positions in the gold market. This trend indicates that their confidence in rising gold prices is weakening, suggesting that recent upward momentum may be losing steam. This shift seems to be a response to unexpectedly strong economic data. The January jobs report showed an increase of 280,000 jobs, far exceeding predictions. This has led to a three-month high of 105.5 in the US Dollar Index, creating challenges for gold prices. For traders in derivatives, this shift in sentiment indicates a need for more cautious or bearish strategies. They might consider buying put options to guard against or profit from a possible drop below important support levels. Another strategy could be selling out-of-the-money call options to earn premiums if the gold price is expected to stay flat or fall.

    Speculator Behavior and Historical Context

    This trend is similar to what we saw in late 2024 when expectations of a strong Federal Reserve policy led speculators to pull back. Gold prices corrected for several months during that time before establishing a new base. Historical patterns suggest we might be heading into another period of price weakness. Looking ahead, we should closely monitor the upcoming Consumer Price Index (CPI) report. If inflation stays above the 2.5% mark, it might delay expected rate cuts from the Fed, which could put more pressure on gold prices in the coming weeks. Create your live VT Markets account and start trading now.

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