Gold’s Bullish Sentiment Seen Easing as Record Rally Stumbles
Gold has already lost more than 5% from its intraday peak last week on signs some trade tensions may be easing.
Photographer: Chris Ratcliffe/BloombergThe gold rally has outshone other asset classes this month — even drawing some comparisons to bitcoin — as President Donald Trump’s tariff war reshapes the global economic order, pushing investors to look for safety. Now, shifts in options positioning has some market watchers saying it’s time to get cautious.
As bullion hit a record last week, the trading of options on the SPDR Gold Shares ETF surpassed 1.3 million contracts, a level never reached before. At the same time, the cost of hedging against declines in the exchange-traded fund sits near its lowest level since August while implied volatility has surged, an unusual pattern.