Loading ...Is Someone Cornering The Gold Market Using Options?
Strong inflation data yesterday afternoon prompted the dollar and 10 year treasury yields to rally, casting strong doubts about a June Fed rate cut … and in a “normal” market gold would have corrected very sharply lower … what did it do ?
Well essentially it ignored it.
Interestingly there was a blip lower suggesting someone has not yet the script that says that gold is now in a new paradigm. Get with it.
With US CPI coming in hot, gold dropped $30 and then immediately bounced even as the USD and yields sailed higher … largely recovering its composure … the gold buyer is clearly keen to hit the bid on any dips.
They say you best see the character of somebody from how they behaviour under adversity … and arguably so it is for markets … well the reading here is that the gold buyer behind this rally has real conviction.
https://www.zerohedge.com/news/2024-04-11/ross-norman-someone-cornering-gold-markets-using-options