Spot gold climbed 0.4% to $4,185.69 an ounce on Tuesday, remaining below the $4,200 threshold as the market balanced speculative selling with structural accumulation. According to estimates from Jefferies cited by Invezz, trend-following funds have built roughly $10 billion in net short exposure after trimming long positions during recent price pullbacks.
Jefferies stated that fast-money participants have been selling while structural buyers continue to accumulate gold. The brokerage noted that if gold advances, traders with short futures exposure may be required to buy contracts back to exit positions, potentially accelerating upside momentum.
Structural support continues to be anchored by central bank purchases. China's central bank added approximately 23 tonnes of gold in September, marking its largest monthly purchase in nearly three years and extending its buying streak to 23 consecutive months. In the first eight months of 2026, China imported more than 1,000 tonnes of gold valued at a record $158.8 billion.
ING commodities strategist Ewa Manthey stated that Chinese official buying represents an important structural support for gold prices, distinguishing it from short-term speculative demand. Separately, Invesco analysts reported that structural demand remains intact as central banks persist in diversifying foreign reserves into bullion, with the upcoming US consumer price index report serving as the next catalyst for short positioning.
Sources
- Invezz · 2026-10-13
