The Metals have been a “risk-on” trade recently (3-mo correlation to S&P’s has been roughly 0.2, but 1-mo correlation is nearing 0.5). A crucial set-up will be a disconnect back to lower/negative correlation (if Equities roll over and Metals hold/trade higher). This might be the “tell” that the Offsides (underweight positioning Gold and Silver) is ready to unwind. I expect the new positioning data out this afternoon to continue to show Gold and Silver (and possibly Platinum) remain in Lower Extremes.
