Gold Trade is More Technical Than Fundamental at This Point

Trading in gold has been lackluster as traders and investors seem to be focused on foreign currency and in wait-and-see mode for the inflation trade. From the trading floor of the NYMEX, Paul Sacks of Aurum Options Strategies tells TheStreet’s Jill Malandrino gold is now up only up 4% on the year following Monday’s selloff. And while that is not a terrible statistic, there has been ample opportunity to rally this year which makes the performance disappointing. Q4 does not look to bright for gold either, Sacks says, particularly because there is not much physical demand. He feels investors are waiting for prices in the low $1200s and the gold trade is more technical than fundamental at this point with open interest in gold and options at low levels.