Back in mid June, we nailed our colours to the mast and re-entered long XAU/USD via a six-month seagull. The title of the trade note, The Asymmetric Gold Trade , helped to explain one factor behind why we liked taking on exposure at that time.
Support was found around the $4,000 mark into July, with August sparking a strong rally higher in the precious metal.
Our structure still has three months to run, with our payoff only capped above $5,400. That projection might raise some eyebrows, but there are plenty of growing tailwinds to suggest at least a run at $5,000 before year-end.