Short for “Trump Always Chickens Out,” this trade has evolved into a high-conviction play used by elite Commodity traders. And in a year where volatility is the new normal – the TACO Trade is delivering outsized profits with remarkable precision.
Real Profits. Real Scale. Real Fast
On Monday, Gold prices soared within striking distance of $3,400 an ounce – after President Donald Trump announced he would double tariffs on Steel and Aluminium imports from 25% to 50% in a fresh escalation of his global trade war.
As GSC’s Head of Trading, Phil Carr, notes: The TACO Trade is built around a predictable macro pattern – Trump threatens massive tariffs, markets panic, Gold rips higher and then days later – Trump backs down.
This is no longer a guessing game – it’s a formula, say Carr. “Buy the panic, ride the rally, sell the reversal, reload and repeat. The TACO Trade is volatility on demand – and Gold thrives on it.”
‘Sell America’ Is The New Tailwind For Gold
Gold is not just responding to tariffs. It’s reacting to a deep structural shift and the global rotation away from U.S Treasuries.
JPMorgan CEO Jamie Dimon added fuel to Gold’s rally this week by warning that the U.S debt situation could spark a bond market crisis.
