Gold needs a pause
We are seeing gold trade below 1900 once again. Nothing huge, but gold is rather extended here and needs a pause. We almost touched the huge 1920 resistance a few sessions ago, right in the upper part of the chanell.
Note RSI and momentum are showing negative divergences lately.
Second chart shows gold vs US 10 year real yield inverted. That logic has faded and there is a recent gap to consider.
Note gold volatility, GVZ, has been fading lately, which was expected. Our most recent logic from late Maystays intact;
"one way to play a possible pause/fade (if you still "must" be long gold) is via overwriting upside calls.
Gold vol is down lately, but still has not seen the vol crash equities have experienced as of late."
Note RSI and momentum are showing negative divergences lately.
Second chart shows gold vs US 10 year real yield inverted. That logic has faded and there is a recent gap to consider.
Note gold volatility, GVZ, has been fading lately, which was expected. Our most recent logic from late Maystays intact;
"one way to play a possible pause/fade (if you still "must" be long gold) is via overwriting upside calls.
Gold vol is down lately, but still has not seen the vol crash equities have experienced as of late."