Public trading strategy
Inflation running hotter than expected — park your money in gold
Thesis
When inflation runs hotter than expected, the value of cash drops, pushing everyday investors toward hard assets like gold that hold their value. Since the news signals rates will stay elevated to fight this inflation, gold should catch a bid as a safe haven. We want to buy gold ETFs on any short-term dips to catch the broader momentum higher.
Strategy approach
Build a mean-reversion strategy on GLD using the daily timeframe. Enter long when the 2-period RSI drops below 10 (oversold conditions). Exit when price closes above the 5-day moving average, or after a maximum 10-day holding period. Include a 2% stop loss.