Gold prices reached a record high of $3,057 per troy ounce last week, driven by strong purchasing interest. Reports indicate that speculative net long positions increased notably for the first time in two months.
Gold ETFs have seen heightened activity recently, with the largest ETF experiencing inflows on eight of the last nine trading days. A notable daily increase of over 20 tons was observed last Friday, marking the strongest inflow in a month, although some outflows occurred the following day due to better-than-expected US economic data impacting Fed rate cut expectations.
Gold Price Momentum
The price of gold hitting $3,057 per troy ounce is more than just a number—it signals that buyers have been actively pushing the market up. This is reinforced by the fact that speculative net long positions have risen meaningfully for the first time in two months. That increase suggests that traders who bet on price movement expected gold to continue climbing, and they positioned themselves accordingly.
Exchange-traded funds linked to gold have also been alive with activity. Inflows into the largest gold ETF on eight out of nine trading days show the level of interest. What stands out the most is the more than 20-ton increase recorded on Friday, the strongest in a month. That kind of movement points to institutional buyers seeing more room for gold to appreciate. However, this was followed by some outflows the next day, which makes sense given that unexpectedly strong US economic data shook up expectations about rate cuts from the Federal Reserve.
What we should keep in mind here is how buyers have remained engaged despite shifting expectations for interest rates. The commitment to larger positions in futures and ETFs shows confidence, but at the same time, that reaction to economic reports indicates the sensitivity to changing macro conditions.
Future Market Considerations
Looking ahead, we have to weigh two factors closely. First, whether buyers continue to build positions even if US data remains firm. That will tell us how much faith the market has in gold’s longer-term direction. Second, how central bank buying trends evolve, since they’ve been a steady source of demand. If these institutions remain just as aggressive, it could support prices even if speculative positioning wavers.
All of this has direct implications for derivative traders. If long positions continue to rise, it suggests that momentum is still on gold’s side. But if ETF outflows pick up again, it might signal hesitation creeping in. The key will be watching whether the current price level proves to be a stepping stone or a short-term peak before a pullback.
