Gold's Extreme Volatility Raises Concerns
Market analyst Jeremy Boulton recently pointed out that the surge in gold prices deserves more attention from traders than movements in the dollar. Despite gold's surge of over 27% this month, market participation remains limited.
Unlike previous rallies, current long positions are even lower than levels seen at the start of 2025, suggesting unconventional forces behind the price action. This distorted price behavior demands close monitoring.
Is Gold Still a Safe Haven?
While gold has long been considered a safe-haven asset, Boulton warns that its volatility is rising, potentially surpassing risks associated with the dollar. Some investors previously viewed gold as safer than global reserve currencies, but current extreme price swings may challenge that perception.
Although the rally dominates market discussions, actual buying remains scarce, indicating traders are cautious about the current trend. This sentiment could set the stage for a potential reversal.
- Gold surges over 27% this month
- Long positions remain below early 2025 levels
- Price action shows extreme distortion