The gold market is looking for Fed consensus, but ‘the FOMC is as uncertain as the war' – Phoenix's Grady

“Right now, the short-term trend is in flux because we have this situation with Iran, so energy prices are all over the place,” he said. “But you saw what happened [on Thursday] with Alphabet. Everybody was just afraid of their CapEx, but if you look at just their earnings alone, they made a ton of money.”

“I think earnings are good. I think economic data is good. So I think overall the economy is good,” he said. “I just think that right now, no one knows what's going to happen.”

“Every single move is exacerbated because there's less people trading, there's less volume,” he said. “People are just risk-off. Everyone's in risk-off, all the traders are in risk-off. Obviously the algos are in there, and they enjoy this environment. But no one really wants to play, because you just don't know.”

“Who's going to put on a position over the weekend? And what's your rationale for doing so? It's a coin toss,” Grady added. “It could get better, it could get worse, but it's a coin toss. And I don't think anybody, especially the larger institutions, no one is trading based on coin tosses. So everyone's remaining flat.”

“A lot of times what happens is people have a gun to their head: You want to roll this position, you want to pay to roll this position? Do you love it? Or do you just want to liquidate, reassess, and see where it goes? That's part of what's putting a little bit of pressure,” he said. “But right now, with rates all over the place, it's just a situation where people are in risk-off, and they just don't want to touch it.”

“If the market is up $100 on 600,000 volume, that matters,” he said. “If the market is up on 80,000, it just means there were some buyers in there and the algos just ran the market up. I think that's the key.”

“No one wants to take a shot. No one wants to be a hero,” Grady said. “Right now, everybody's in risk-off mode waiting to see some more clarity on the Iranian situation and from the Fed.”

“When you look at what the Fed's coming out with [this week], that's one big piece of the puzzle,” he said, but the Iran war still dictates much of the direction. “When the MOU came in, all of a sudden you saw these things click, and we started going away from the war and more focusing on the economy: Let's look at Warsh, let's look at the Fed, let's look at earnings, job stats.”

“You saw that when the Iranian situation does subside, it reverts back to the economy,” he said. “And I think the underlying economy, everyone likes what they see.”