Analyst Recommends $4.10 GLD Put Spread as Gold Tests 200-Day Average
Updated
Updated · CNBC · Jun 5
Analyst Recommends $4.10 GLD Put Spread as Gold Tests 200-Day Average
1 articles · Updated · CNBC · Jun 5
Summary
$4.10 buys the GLD July 17 395/370 put spread, a bearish trade with a maximum $410 loss and about $2,090 maximum gain if GLD drops 10% in six weeks.
Gold is hovering near its 200-day moving average and a 50% Fibonacci retracement, while DMI and several moving averages have turned lower, pointing to a possible breakdown rather than a long trading range.
Hot U.S. jobs data and Iran-linked inflation risks are reinforcing a higher-for-longer Fed outlook, a backdrop that typically pressures non-yielding gold by lifting real-rate competition.
Implied volatility across one-, two- and three-month options remains near one-year averages, and skew has steepened, leaving near-the-money protection relatively cheap at a critical technical inflection point.