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 significant sell-off follows a record addition of 1.2 million ounces of gold futures positions on April 22nd. The reduction occurred as gold prices briefly exceeded $3,500 for the first time, indicating a potential shift in market sentiment and increased volatility. Traders should closely monitor Chinese gold futures activity, as rapid position changes can signal short-term price corrections and heightened liquidity risks in the precious metals market (source: The Kobeissi Letter, May 2, 2025).