Gold bullish trading surges

Spot gold prices had been rallying back to near two-month highs ahead of Thursday's Federal Reserve FOMC statement, summary of economic forecasts and Powell's press conference. But the hawkish tilt of the summary and Powell's speech sent the dollar soaring and the precious metal plummeting. Spot gold has been pushed below its 200-day moving average.

However, Goldman Sachs points out: Beneath the surface, "we are starting to see clientsRe-engage in gold ETF-SPDR (GLD) trading440,000 call options were traded, the most since March... "

In particular, they noted: "We saw a client sell 75,000 call options CFDs expiring in October with call-over prices at 180 and 190, buy 75,000 call options CFDs expiring in November with call-over prices at 185 and 195, and sell 37,000 put options expiring in November with call-over prices at 175."

UBS also confirmed,Large-scale gold trading is underway in the equity sectorAs the chart below shows, the surge in gold options trading occurred around the time of FOMC statements and press conferencesThis shows that someone is betting that the Federal Reserve will screw everything up.

Nicky Shiels, head of metals strategy at MKS PAMP SA, believes that Federal Reserve Chair Jerome Powell's goal of achieving a soft landing for the world's largest economy could be upended by the central bank's hawkish line. She added that this couldEnhancing gold's safe haven status。

In addition to this emotion,Goldman Sachs also made a trading proposal: "We like to hold (gold) call options directly"Its implied volatility in the first three months is close to a four-year low."

Shiels concluded in a report:"This'higher-for-longer 'purgatory definitely raises the risk of a hard landing, making precious metals the only safe place to hide unexpectedly, and more than one trader seems to be betting on that outcome."。

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