Gold Becomes the Most Ignored Trade Again

Gold is currently in a deep consolidation phase with depressed positioning and low volatility near the $4400 support level. The report suggests that the improving asymmetry and divergence from Japanese rates make selective upside convexity interesting.

Key Takeaways

• 1.Gold has entered a significant consolidation phase with collapsed volatility and depressed speculative positioning.
• 2.The $4400 price level is a critical technical support area that must hold, coinciding with the 200-day moving average.
• 3.A notable divergence has emerged between Gold and the Japanese 10-year yield, potentially acting as a catalyst for a price move.

Table of Contents

• Boring Gold
• $4400
• The dollar connection
• Signs of life
• Theta harvesting
• The "ultimate" hedge

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