Gold Gains As Stocks Strike Out On MLB “Pause”, Fading Stimulus Hope

Gold Gains As Stocks Strike Out On MLB “Pause”, Fading Stimulus Hope

Tyler Durden

Tue, 07/28/2020 – 16:00

Silver was clubbed like a baby seal overnight after spot prices topped $26 and was unable to get back to even despite a valiant dip-buying effort…

Source: Bloomberg

Gold was hit too (after futures topped $2000 overnight) but rallied back notably during the day to close higher, with spot prices back above $1950…

Source: Bloomberg

Somebody loves goooold…

Nasdaq notably underperformed on the day with stocks accelerating lower after McConnell appeared on CNBC and raised questions of the imminence of the stimulus deal given the differences and The Marlins MLB team “paused” its season…(NOTE – a MRNA headline was unleashed as stocks stumbled to stick-save markets). Further headlines from various GOPers also suggested no deal is imminent and sent stocks even lower into the close…

As Nomura’s Charlie McElligott noted in a warning last week, from an index-options level, QQQ (Nasdaq ETF) remains in far more fragile state than still-stable SPX – where although the QQQ $Delta position has now rather precipitously declined partially due to the implied implied length but also of course as a function of the move lower ($Delta from 97th %ile 1w ago to the current 62nd %ile), the QQQ Dealer Gamma position remains “short,” with spot 259.20 preopen vs our estimated “Gamma Neutral” level up at $262.67…