According to The Kobeissi Letter, Chinese investors reduced gold futures positions by approximately 1 million ounces on Wednesday night, marking the third-largest reduction on record. This follows a significant build-up of 1.2 million ounces on April 22nd, highlighting sharp shifts in trading sentiment. The adjustment coincided with gold prices briefly exceeding $3,500 for the first time, suggesting a potential profit-taking phase or risk management strategy among large-scale traders. Such large moves in gold derivatives may lead to increased market volatility and influence short-term price trends. Traders should closely monitor open interest and volume changes for potential breakout or retracement signals (Source: The Kobeissi Letter, Twitter, May 2, 2025).