Along with the latest Fed decision, Bob Haberkorn, senior commodities broker with RJO Futures, said that gold is benefiting from market jitters from increased “saber rattling.” In particular, he said that President Donald Trump’s tweets late Wednesday, putting Iran on notice, are making equity markets nervous.
"There is a sense of unease in equity markets that is benefiting gold,” he said.
Haberkorn said that the employment report would have to see a significant upside miss to knock gold of this rally due to global uncertainty. He added that if investors are nervous about the recent gains, they could buy a short-term weekly put option with a 1200 strike. He added that this trade would hedge some of gold's downside risk.
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Follow Bob on Twitter @Bob_Haberkorn.
Bob started his career in 2005 as a broker with Lind-Waldock. He is often quoted in industry sources, such as the Wall Street Journal in regards to precious metals and the copper market.