In our new Gold Snapshot:
Gold futures hit all-time high in USD, closing above $2,070 an ounce after dovish FED duet (C. Waller & J. Powell).
Comex Gold futures shot up 1.6% on Friday closing at $2090 per ounce, surpassing the previous high set on August 2020.
Fed funds futures are now pricing in five rate cuts by the end of 2024.
Raging Bulls seem unstoppable, raising Week to-Week Open Interest by 11,017 lots or 1.1 M ounces, to 510K contracts (6-month high), as traders continue to increase their long bets.
COT report covering the week to Nov 28 showed managed funds were net-long for seventh straight week increasing their position by 45% (35,758 lots or 3.8M ounces) to 114,893 contracts. (page 2)
Trading flow reflected a frenzy of calls buying, generating a rise in implied volatility for calls/upside strikes. Gold options activity remains supportive for the metal, with call wall (highest gamma) rolling higher to 2100. (page 3)