Gold has been in a 2-year bear market, which has seen failed rallies on the back of various news events. Continued strength in the US economy and labor market has offset political and economic events since the Gold market turned bearish in 2013.
“Our base case remains for higher U.S. real rates and lower gold prices, albeit with there being risks that the gold price weakness is pushed out further should the Fed surprise us and remain on hold in December,” CNBC reports, citing Goldman Sachs.
“The demand for call options, that convey the right to buy the fund’s shares at a certain price in the future, is high compared with the appetite for puts, usually used for more bearish strategies,” according to Reuters.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.