On Monday, I observed that gold futures, when analyzed on a daily chart, are accompanied by a decline in the CFTC gold net speculative positions. These positions now resemble the December 2025 range of 176.6K to 210.3K, as seen in the first half of that month.
While the movements of the gold-silver ratio (XAG/XAG), indicating the advent of reversal, started on Jan.28, 2026, tested a high at 67.87 on Jan.30 but closed the day at 57.41 is likely to accelerate above the immediate resistance at 59.93, and look ready to enter the zone, seen in the first half of December 2025.
Undoubtedly, both indicators show that some more exhaustion could be there in gold prices.
On analysing the movements of gold futures in a daily chart, I find that after advent of a heavy sell-off Jan.30 in follow-up an indecisive move on Jan.29, 2026 when the gold futures tested a record high at $5,628, despite testing the day’s low at $5,124.71, formed an indecisive candle, resulting in the formation of the biggest bearish candle on Jan.30, 2026.
On Feb.2, 2026, gold futures, once again, are going to repeat the formation of an indecisive candle, despite testing the day’s high at $4,905.71, after opening at $4,764.55 and day’s low at $4,424.69, currently trading in a narrow range, indicating continuity of selling this week.
I find that gold futures have tested the significant support at the 50 EMA ($4,533), despite piercing this support, and are still facing significant resistance below the 20 EMA ($4,815), while the 9 EMA ($4,947) looks ready to move below the 20 EMA, which could form a bearish crossover in a short while.
I find that if the daily candle, formed on Feb.2, 2026 close below the 50 EMA, it will confirm the continuity of the selling spree in gold futures for the rest of the week.
Undoubtedly, a sustainable move below the 50 EMA could push the gold futures to test the next support at the 100 EMA ($4,222), and a sustainable move below this significant support could push the futures to test the next significant support at the 200 EMA ($3,706.77), from where some reversal may be expected.
In conclusion, I find that the sudden decline in net speculative long positions to 205.4K from 244.8K last week ensures this decline to continue, as this level equates with the week of Dec.16, 2025, when the gold futures were at $4,363.
