Gold Undergoes a Market Root Canal Removing the Speculative Decay

3 Actionable Takeaways

• Tesla’s setup before earnings looks risky with elevated implied volatility (115%) and strong resistance near $450, suggesting limited upside unless results are exceptional.

• Gold’s recent rally appears speculative, likely driven by leveraged products and volatility rather than fundamentals, with potential downside if it breaks its 20-day moving average.

• Macro conditions don’t support a “debasement trade” narrative, as U.S. money supply (M2) is growing below historical norms, weakening the case for gold as an inflation hedge.

Tesla enters earnings in a technically fragile position, with high implied volatility and heavy call exposure suggesting a limited path higher unless results are outstanding. Meanwhile, gold’s decline highlights speculative behavior rather than fundamental strength, with current trends challenging the idea that dollar debasement is driving prices.