Life After Goldmageddon – Boring Is The New Up

Chilling

Our base case for gold, outlined recently, remains that the shiny metal needs to consolidate after the huge run-up and subsequent pullback from all-time highs. Boring for longer.

Source: LSEG Workspace

 

Takes time

Gold’s volatility shock likely needs more time to work through the system, previous episodes have taken months to fully normalize. Let’s see how this one plays out, but for those who believe gold stays boring for longer, collecting theta could make a lot of sense.

Source: LSEG Workspace

 

Upside still well bid

Gold 5/25 delta call skew down recently, but still at elevated levels.

Source: GS

 

Shaving off

Gold managed money long reduced rather aggressively.

Source: GS

 

Dormant

Gold net non commercials still refuse getting excited...

Source: LSEG Workspace

 

Watch Japanese rates

Make sure to watch Japanese rates before trading gold. Perfection prevails.

Source: LSEG Workspace