Gold - The Everything Hedge Is Everything Again

The everything hedge...

...is doing just fine. Gold bounced perfectly on the lower part of the steep trend channel, right at the 50 day. A new ATH close should get people excited again.

Source: Refinitiv

Good for gold

Gold likes this environment of policy uncertainty...

Source: Barclays

Will they chase?

Good luck explaining why you shaved off one of the more "obvious" longs, and the everything hedge, to the boss. Gold net non commercials vs gold price gap getting very wide. Do "they" get forced into chasing the yellow metal?

Source: Refinitiv

Instead of VIX

VIX at these levels is all but an "optimal" hedge. Gold has some of that hedge logic, and is more attractive than chasing VIX around 40.

Source: Refinitiv

Kicking in

Gold volatility finally showing some of that "gold trades with an upside skew" behavior.

Source: Refinitiv

Loving it

The YTD gold vs the DXY (inv) chart needs little commenting.

Source: Refinitiv

Smooth sailing

CTAs have been riding the gold long well. Downside convexity could become an issue, but that seems a distant problem...

Source: Refinitiv

Source: GS