Gold proponents spent nearly 180 million dollars on bullish positions in the precious metal despite a 25% decline from its January peak. Approximately 100 million dollars in call options on the SPDR Gold Shares ETF and over 80 million on the GDX miners ETF were bought on Friday, a strong signal of optimism. This surge comes as the 10-year U.S. Treasury yield stalled around 4.7% and the dollar fell to its lowest level since mid-June. The weak U.S. jobs report for July, with an unexpected drop of 23,000 nonfarm payrolls, bolstered the case for dovish Federal Reserve policies. Foreign buyers, particularly Chinese individual investors who are aggressively purchasing domestic gold ETFs due to Beijing’s restrictions on capital outflows, are also contributing to this bullish momentum.
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