Gold price up over 1%, closing in on new record
Bullion is now 18% higher for the year, boosted by anticipation of Fed loosening as well as significant buying by central banks.
There are two markets where supply and demand fundamentals have gone out the window and where the value of the dollar and investor sentiment mean everything. Those markets are of course gold and silver. As silver has become the wild west of the commodities markets, the new pork bellies if you will, investors using the option selling strategy should focus their attention on the “gentleman’s metal” – gold.
Dollar Lower = Gold Higher has been an effective formula for gold put sellers. However, this formula can also work in reverse.
