economy
Gold just had its best week in 7 months. Here’s why Mike Khouw is buying more
Gold logged its best weekly gain in seven months driven by several forces.
TL;DR
- Gold saw its best weekly gain since January, rising approximately 7%.
- Key drivers included a weaker U.S. dollar, falling Treasury yields, and weaker-than-expected U.S. employment data.
- The People's Bank of China is expanding its gold storage in Hong Kong.
- This move supports Hong Kong's ambition to become a major international bullion-trading hub.
- Newmont Mining, the largest gold miner, has surpassed its 150-day moving average, suggesting other gold-related instruments may follow.
- Options traders see a favorable payoff for gold call spreads compared to similar S&P 500 strategies.