Interesting options positioning in gold ahead of US CPI ...Middle East

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Interesting options positioning in gold ahead of US CPI
It’s been very hard to reconcile the recent upside move in gold based on the fundamentals.I don’t think that rate cut expectations make sense for the move, as gold waited for markets to start pricing out Fed cuts before the move higher started.Some are pointing to central bank buying, while others point to inflation hedging (don’t get me started on this one).But I think majority of the move has simply been a momentum play.At some stage momentum takes over, which makes chasing it at the highs unattractive, and fading at the highs too dangerous.The options market is getting a bit more cautious of the recent rally though.This chart shows gold spot in blue and 1-month 25 delta risk reversals for

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