Gold’s 18% Rally Faces a Volume Crisis, a Strong Rival, and a Wall of Puts

Gold's price has surged 18% from its March low, approaching the upper trendline of a falling channel. However, this rally faces significant headwinds. Firstly, trading volume has been progressively shrinking as the price approaches resistance, indicating a lack of conviction from genuine buyers. Secondly, the gold-silver ratio is declining, suggesting silver is outperforming gold, which typically occurs when risk appetite increases and demand for safe-haven assets like gold wanes. Options data on the SPDR Gold Trust (GLD) further reveals bearish sentiment, with the put-call volume ratio increasing significantly as gold prices rose, indicating traders are placing more bets on a price decline. Key price levels to watch are $5,155, which represents the upper trendline of the falling channel and a potential breakout point; a sustained move above this level would validate the rally, while failure would confirm the bearish signals and could lead to a price drop.

(Source：BeInCrypto)