Gold futures finished higher each of the last 5 sessions this week despite correcting from all time highs into November opex. Pundits claimed that "WW3 uncertainty" and "DXY weakness" was the reason for the rally however this week the DXY finished at 2 year highs and the WW3 talk has cooled down since Wednesday morning. Meanwhile gold continued to surge into the end of the week. The reason was largely due to negative dealer gamma effects on the GLD 235 and 240 strikes that rolled of last Friday for November opex. As given to clients -
The trade idea was also presented publicly on the 14th -
Gold is now above $2700 as of the weekly close on 11/22 and despite us only looking for a bounce last week, there may be real upside legs here as well. Not only is dealer gamma positive through January but seasonality is on the precious metal's side as the current chart lines up near perfectly with the average monthly return as evidenced by the Late October top into the mid November low.
Could gold futures be poised for a run at $3000/oz by mid Q1? That remains to be seen but the trend is still intact and buyers have shown that they are still out there and willing to step in front of dips. For access to premium trading content including swing trade alerts & live day trading room visit - account.carnivoretrades.com Youtube - @carnivoretrades X - @aaronbasile Instagram - @carnivoretrades
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