Gold: Victor Niederhoffer Would Have Loved This Tape

Respect the tape

Victor Niederhoffer spent a lifetime reminding traders that price deserves respect. Markets don't care about elegant narratives, opinions or macro stories—they care about probabilities, positioning and, ultimately, the tape. It is perhaps fitting that, just as one of Wall Street's most iconoclastic market minds passed away, gold is once again attempting something the market has repeatedly dismissed this year: a genuine breakout.

Yesterday we argued that gold was shaping up for its most attractive tactical setup in months, highlighting washed-out positioning, CTA shorts and a still-powerful structural bid from China and central banks. Twenty-four hours later, the thesis hasn't changed—it has broadened. Here are five additional charts that reinforce the bullish case.