XAUUSD Bottom
Since its high close to 1800, gold has been steadily gone down. The current level puts the yellow metal almost half of its peak and someone is betting big its the bottom.
1067 has shown to be the Alamo of gold traders: not away from danger but a standard for the rally point.
Strength and gain in the face of a similar story for the dollar shows how forceful the rally could become when shorts exhaust. Dollar strength could dampen the forward gains since the market has failed to price in Fed guidance (dot plots) and other fundamental attributes leading to dollar outperformance such as newly initiated carry trades. The only less covered story is AU appreciation in a market that not only crushes commodities, but also most dollar opposition.
1067 has shown to be the Alamo of gold traders: not away from danger but a standard for the rally point.
Strength and gain in the face of a similar story for the dollar shows how forceful the rally could become when shorts exhaust. Dollar strength could dampen the forward gains since the market has failed to price in Fed guidance (dot plots) and other fundamental attributes leading to dollar outperformance such as newly initiated carry trades. The only less covered story is AU appreciation in a market that not only crushes commodities, but also most dollar opposition.
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