With heavy moves on the markets last weekend , EXANTE report on recent upswings
While equity futures are modestly higher compared to Friday's early 9:15 am close, where only a short, 45 minute long bloodbath was allowed on Good Friday after the worst jobs report in two years, the one asset class that has moved the most by far this evening is gold, which has spiked by 1.5% and is on the verge of breaking out above the resistance level that has proven a tractor beam to any momentum breakout over the past 2 months
If gold rises above $1225 overnight, or rather if the trading desk under the supervision of Benoit Gilson, the BIS' "head of FX and gold" allows the price of paper gold to reach that level, a huge short squeeze will be imminent because, as a reminder, in addition to the EUR, gold shorts are also at a record high.
As for the reason why gold is suring off the bat, the main reason cited by trading desks is what Goldman announced late on Friday, namely Goldman's economic team strong hint to the Federal Reserve that "believe that the right policy would be to put hikes on hold for now."
With Gold traders at all time short levels of gold contracts as the chart clearly shows , traders are not betting this way and they very well may get caught off side