Pips School Research5 min read
Volatility clusters. Recognising the current regime matters more for sizing than predicting direction.
Periods of high volatility tend to follow one another, as do quiet periods. Position sizing that ignores the current regime can produce very different risk from one month to the next.
The pair has spent several sessions in a narrowing range as traders wait for the next inflation print. Here is how the structure is shaping up.
Gold's relationship with real yields remains the most useful lens for framing current price behaviour.
Rate differentials have driven much of the pair's multi-year behaviour. What would change that dynamic?