Gold Market Correction Looms as Non-Commercials Unwind Long Positions Ahead of Fed Meeting

The CFTC's latest report shows that non-commercials have built up an unusually large long position in gold, holding 56.9% of the whole market against short positions.

This is the highest reading since 2018 and just shy of the all-time record of 0.81 points above this level. The August report shows a net 243,334 on open interest of 427,957, with non-commercials long 277,159 against short 33,825.

The Fed's decision to hike rates is expected to impact gold prices, as Federal Reserve Chairman Jerome Powell mentioned at the Jackson Hole conference that PCE runs 3.7% on twelve months and 4.1% on six.

Given this context, a target price of $4,280 is being predicted for gold by some analysts before the September meeting.