US CFTC data shows non-commercial net positions in gold at 164K. The previous reading was 162.5K.
This is an increase of 1.5K net positions from the prior report. The figures refer to futures and options positioning reported by the CFTC.
Gold Positioning Signals Steady Optimism
The latest figures show large speculators slightly increased their bullish bets on gold. This is not a massive shift, but it confirms the underlying positive sentiment we have seen building among hedge funds. It tells us that despite a quiet market, big players are not backing away from their long positions.
This positioning reflects a broader economic narrative that is becoming clearer. We saw March Consumer Price Index data cool to 3.1%, a welcome decline from the stubborn 3.8% figures we wrestled with at the end of 2025. This has led the futures market to price in a 60% probability of a Federal Reserve rate cut by the third quarter, making gold more attractive.
We also have to consider the strong fundamental support coming from official channels. New data from the World Gold Council shows central banks continued their aggressive buying, adding another 250 tonnes in the first quarter of this year, building on the record pace set in 2025. This institutional demand creates a solid price floor and absorbs a significant amount of market supply.
For traders, this suggests a strategy of buying call options with expiries for late this year might be sensible. This approach allows participation in a potential rally driven by a Fed policy shift, while defining the risk if gold remains range-bound for a few more months. Selling out-of-the-money puts could also be a viable strategy to generate income, banking on the idea that strong central bank demand will prevent any severe price drops.
