While Gold remains on top, Silver and other, more volatile and less safe-haven metals are getting rejected quite starkly. Note that Platinum seems quite resilient above $2,000, so keep an eye on this one.
With positioning getting to extremes (as expressed in a recent Bank of America Survey), options amassing for $15,000 – $20,000 prices in Gold (typical of Market tops), and fundamentals not warranting a continuous, clear-cut path to doubling prices, metals could be facing a fragile outlook ahead.
Of course, with a second US warship heading to the Middle East, which should arrive in about a week, it will be challenging to say. Geopolitics are all about deception, particularly in the age of information.
But in the meantime, with US Rates not expected to change until at least May, dollar positioning at its lowest, and Metals overcrowded, the narrative seems to be turning for Markets, may it be for AI or metals.
After a year-long straightforward Debasement Trade, things could suddenly not be so easy.
Let’s dive right into an in-depth look at Gold as traders prepare for a heavy slate of Macroeconomic data throughout the week.