Public trading strategy
Fed enters a 'Goldilocks' scenario as jobs cool down — gold is breaking out to t
Thesis
Gold thrives when interest rates stop climbing because it doesn't pay a yield, making it more attractive compared to bonds. With TD Securities calling the current environment a 'goldilocks situation' for the Fed, the central bank has an excuse to pause rate hikes. This macro shift weakens the dollar and directly supports the bullish momentum gold has built over the last few days.
Strategy approach
Create a trend-following strategy for GLD (Gold ETF) on the Daily chart. Enter a long position when the 10-year real yield (TIP) closes lower for three consecutive days and GLD is trading above its 50-day moving average. Set a profit target at a 5% gain and a hard stop loss at 3% below entry.