TREE NEWS update: Gold’s short squeeze is evolving into a more sustained uptrend as macro signals and technicals align, with $4500 as a key resistance. Chinese capital dominates the rally, forcing short covering, while Western active longs return. Goldman recommends call spreads and digital KO structures for upside participation.
Gold Short Squeeze Enters Phase 2: $4500 Key Resistance
The notable shift here is structural rather than directional: Chinese capital is doing the heavy lifting, squeezing shorts and pulling Western active longs back in, which broadens the buyer base beyond a single regional flow. Goldman's preference for call spreads and digital KO structures signals that desks want upside exposure without paying for it outright — a sign of caution even within the bullish camp. Whether the squeeze matures into a genuine trend or stalls at $4500 is the open question, and it hinges on whether Western participation keeps pace once forced covering fades.
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