Is the gold rally over?
In the short-term, gold appears vulnerable to a deeper correction, encouraging us to sell short-dated gold call options. However, the longer-term drivers of gold strength remain intact.
Gold peaked at USD 3,500/oz on the 22nd of April and has subsequently undergone a material correction, weakening against the US dollar and our gold basket.
Gold enjoys significant technical support at USD 3,200/oz, but a breach of this level will likely lead to a deeper correction, towards support around USD 2,950/oz.
Gold option volatility remains elevat…
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