‘Very bizarre action’ as gold retraces entire summer rally to test $4,000/oz: AI weakness, or yen intervention? – Jesse Columbo - Kitco
‘Very bizarre action’ as gold retraces entire summer rally to test $4,000/oz: AI weakness, or yen intervention? – Jesse Columbo - Kitco
Source: Kitco
―
DW NOTE
Gold down 23.6% from its January high while the Strait of Hormuz has been effectively closed for five days and Brent sits at $113 — that's not just bizarre, it's mechanically implausible. Either someone needed dollars in size and sold what they could, or the yen carry trade is unwinding again and levered positions are getting liquidated regardless of fundamentals. Markets don't price in a Gulf supply shock by dumping the oldest safe-haven asset 24% in nine months.