Spot gold edged higher to $4,185.69 per unse on Tuesday while trading under $4,200, as trend-following funds held an estimated $10 billion in net short positions and global central banks continued bullion purchases under ongoing macroeconomic pressures.
Spot gold rose 0.4% to $4,185.69 per unse on Tuesday as market participants weighed high Treasury yields and a strong dollar against stubborn geopolitical tensions and central bank accumulation below the $4,200 threshold. Analysts point to a distinct divide in the market between speculative momentum traders and structural buyers whose appetite has remained resilient despite rising yields.
Trend-following funds sat on roughly $10 billion in net short exposure after scaling back long positions from previous highs. That large bearish positioning sets up a potential short squeeze if macroeconomic conditions turn.
China Increases Gold Reserves to Support Bullion Prices
China added roughly 23 tonnes of gold to its reserves in September, marking its largest monthly purchase in nearly three years and the 23rd month of buying, while structural buyers absorbed the available supply. China also imported more than 1,000 tonnes during the first eight months of 2026, valued at a record $158.8 billion. ING commodities strategist Ewa Manthey told CNBC that Chinese buying has become an essential source of structural support for bullion prices, distinguishing itself from speculative demand.
That persistent accumulation echoed across exchange-traded funds. Funds listed in Europe and North America led the surge, with North American funds reversing earlier outflows to attract investment capital in the third quarter.
In the third quarter, total assets under management of global gold ETFs increased by 9%, while total gold holdings increased by 211 tonnes. By region, US-listed gold ETFs led the influx, followed by UK-listed funds.
World Gold Council analysts, via Vietnam
Domestic SJC gold bar prices were traded at 140.3–143.3 million VND per unse for buying and selling prices, showing little change compared to the previous day, while this positive performance offset earlier losses and brought the year-to-date cumulative influx to positive levels.
Technical Resistance Levels Define Spot Gold Price Movements
FXEmpire analysts noted that the resistance level at $4,226 per unse served as a trend-reversal point while spot gold remained locked within a tight resistance zone defined by the 20-day moving average at $4,220 and the 100-day moving average near $4,250 per unse. A decisive breakout above that boundary could open paths toward $4,400 and $4,511 per unse, whereas a break below support at $4,144–$4,150 risks pulling the metal toward $4,103 and the psychological $4,000 mark.
Zaner Metals pointed out that investors monitored key economic releases for clues regarding future monetary policy tightening as traders kept a close eye on the upcoming U.S. Consumer Price Index report. Markets priced in roughly an 85% probability of a Federal Reserve rate hike in December, keeping 2-year Treasury yields above 4.81% and maintaining the opportunity cost of holding non-yielding bullion.
Catalysts For The Next Major Market Move
Market strategists emphasized that the massive short positioning in futures markets created a coiled spring. A softer inflation reading could pull yields lower, weaken the dollar, and force bearish traders to buy back futures contracts to close their positions, accelerating any upward move.
As physical buying from central banks meets speculative positioning, a hotter-than-expected inflation report would likely push yields and the greenback higher, validating short sellers and placing renewed downward pressure on precious metals.