Core Insights - The SPDR Gold Trust (GLD) has experienced a significant breakout, surpassing a buy point of 317.63 on August 29, and has since moved well past its buy zone, complicating new investment positions [1] - Gold prices have surged 43% in 2025, driven by concerns over rising U.S. debt and a weakening dollar, which raises questions about the dollar's long-term stability as a reserve currency [2] - Current inflation remains above the Federal Reserve's target of 2%, leading to a speculative tone in gold investments, which could reverse quickly [3] Investment Strategy - Investors can consider a call ratio spread on SPDR Gold Trust, buying one 380-strike call and selling two 390 calls, with an expiration date of November 21, for a credit of 50 cents per share [4] - The most common outcome for this trade is a profit of $50 in a 100-share contract if the fund trades below 380 at expiration, with maximum profit occurring if the fund hits 390 [4] - Despite the attractive payoffs, the trade carries unlimited risk if the gold fund rallies sharply past 390, necessitating a cautious approach with small positions [5] Risk Assessment - In a hypothetical scenario where SPDR Gold Trust trades at 430 by November 21, investors could face a loss of $2,950 per set of contracts, although the break-even point is at 400.50 [5]