Will gold ever move higher?
We are seeing US 10 year real rate crash further, but gold refuses catching up.
We have shown the TIP vs gold chart a few times over the past few weeks. The spread has come in tiny lately, but the gap remains huge (the pairs trade remains interesting).
Gold needs to break up and close firmly above the 1840 level in order for anything meaningful is to occur to the upside. Gold vol, GVZ, isn't at rock bottom lows, but is close to post corona levels. Upside plays via call spreads look interesting from a risk/reward point of view, although we must admit the shiny metal isn't ready for a proper push (if)....
We have shown the TIP vs gold chart a few times over the past few weeks. The spread has come in tiny lately, but the gap remains huge (the pairs trade remains interesting).
Gold needs to break up and close firmly above the 1840 level in order for anything meaningful is to occur to the upside. Gold vol, GVZ, isn't at rock bottom lows, but is close to post corona levels. Upside plays via call spreads look interesting from a risk/reward point of view, although we must admit the shiny metal isn't ready for a proper push (if)....