Commodities on fire - bullish gold and hogs
I've put together a video on my views on Gold and Silver on YouTube and why we could be seeing the start of a new bull market. My view centres on the decoupling we’ve seen between Gold and US real rates and how the investment community are using Gold as a hedge against a central bank pivot, driven by the notion of a policy mistake.
We’ve seen some big moves in AG’s and soft commodities too and I have an eye on coffee and hogs – lean hogs could be starting something beautiful. I know this isn’t a market that comes onto everyone’s radar too often, but for trend-followers or momentum players, when this goes it can go and will often be traded by CTAs (systematic trend followers).
Lean hogs - Daily chart
(Source: TradingVIew - Past performance is not indicative of future performance.)
Take a look at the daily, where we’ve seen price close above the 4-month range highs and while there's always a risk of a fake-out, if this goes it could trend strongly. As with any trade, if we do see a failed break this could be powerful, so I’ll close on this development - when I lose, I want to lose small.
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.