Gold prices dip as December rate cut bets wane; Fed, econ. data in focus
Investing.com -- Investors are showing increased interest in dual binary strategies that are bullish on both gold and equities as gold prices experience volatility after reaching record highs.
"We’ve seen decent activity in the gold up/equity up dual binary trade — it is viewed as a ’mechanical’ major winner pair of the Fed cutting cycle," said Herve Guyon, head of flow strategy and solutions at Societe Generale SA.
Guyon explained that central bank gold purchases combined with retail momentum could accelerate this trend.
He noted that this pairing is "fundamentally attractive from pricing perspective, as the two assets are trending firmly in the same direction yet the low daily return correlation enables trading desks to offer attractive prices."
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