Traders, we're identifying what we believe to be the initial stages of a new investment cycle in Gold, where the Macro discretionary funds They're back in the picture.
By Igor Pereira
Financial Market Analyst
After the purge of volatility that cleared the legacy positions, the market went through a structural reset. The directional flow is returning in a measured way, and this completely changes the game to whoever operates the XAU/USD.
Institutional participation is returning after the dust drops on volatility levels.
Liquidation Risk Reduction: The reengagement of macro buyers reduces the risk of cascaded settlements and reintroduces high optionality in the future complex.
Selective Accumulation: The flow is mainly coming back through selective accumulation of convexity.
Buying Power (Dry Powder): With Open Interest (Open Contracts) having recently collapsed, the Macro Discretionary Funds now have "dry dust" (available capital) to mount new massive positions.
The dynamics between trading banks (Dealing Banks) and the funds changed after the last market events.
Institutional Fear: The banks are definitely operating in fear after the squeeze And last month's purge.
Institutions in $5,400: Level of $5,400 is being identified as the point of (maximum pain) for the market of options.
Short Squeeze Potential: There is a tactical component of options that can serve as a trigger for new short squeezes violent, if the price presses the resistance levels.
Looking at our updated chart, the price is struggling to resume the top of the channel.
Cycle Confirmation: The fact that Gold is making an effort to resume the channel, soon after the return of the macro funds, validates our thesis that new historical maxims are near.
The market cleaned the amateurs and now the professionals are taking over. The realised volatility collapsed from its extreme maxims, allowing big money to enter with more confidence.
My Vision:
The fear of $5,400 it's not just a number, it's where most derivatives and retail options will be "squeezed".
Follow Flow: The return of macro discretionary buyers is the strongest sign that the rally has real support and is not just geopolitical panic.
Watch out for the banks: If the banks continue to "negotiate in fear", any short selling attempt will quickly be absorbed by the funds.
Premium access: The Convexity Tracker
You want to know exactly how the Macro Funds are setting up their "Convexity" positions? In the Member Area, we released the decoded report from the options stream, showing the strikes where Smart Money You're betting on the next Gold explosion.
Don't operate against the giants. Follow the trail of the Macro Funds, PREMIUM ExpertFX!
Latest comments
Join the conversation
You can post now and register later.
If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.
Traders, we're identifying what we believe to be the initial stages of a new investment cycle in Gold, where the Macro discretionary funds They're back in the picture.
By Igor Pereira
Financial Market Analyst
After the purge of volatility that cleared the legacy positions, the market went through a structural reset. The directional flow is returning in a measured way, and this completely changes the game to whoever operates the XAU/USD.
Institutional participation is returning after the dust drops on volatility levels.
Liquidation Risk Reduction: The reengagement of macro buyers reduces the risk of cascaded settlements and reintroduces high optionality in the future complex.
Selective Accumulation: The flow is mainly coming back through selective accumulation of convexity.
Buying Power (Dry Powder): With Open Interest (Open Contracts) having recently collapsed, the Macro Discretionary Funds now have "dry dust" (available capital) to mount new massive positions.
The dynamics between trading banks (Dealing Banks) and the funds changed after the last market events.
Institutional Fear: The banks are definitely operating in fear after the squeeze And last month's purge.
Institutions in $5,400: Level of $5,400 is being identified as the point of (maximum pain) for the market of options.
Short Squeeze Potential: There is a tactical component of options that can serve as a trigger for new short squeezes violent, if the price presses the resistance levels.
Looking at our updated chart, the price is struggling to resume the top of the channel.
Cycle Confirmation: The fact that Gold is making an effort to resume the channel, soon after the return of the macro funds, validates our thesis that new historical maxims are near.
The market cleaned the amateurs and now the professionals are taking over. The realised volatility collapsed from its extreme maxims, allowing big money to enter with more confidence.
My Vision:
The fear of $5,400 it's not just a number, it's where most derivatives and retail options will be "squeezed".
Follow Flow: The return of macro discretionary buyers is the strongest sign that the rally has real support and is not just geopolitical panic.
Watch out for the banks: If the banks continue to "negotiate in fear", any short selling attempt will quickly be absorbed by the funds.
Premium access: The Convexity Tracker
You want to know exactly how the Macro Funds are setting up their "Convexity" positions? In the Member Area, we released the decoded report from the options stream, showing the strikes where Smart Money You're betting on the next Gold explosion.
Don't operate against the giants. Follow the trail of the Macro Funds, PREMIUM ExpertFX!