Gold risk reversals show a surge in demand for calls or bullish bets
|One-month risk reversals on gold (XAU1MRR), a gauge of calls to puts, have surged from 0.275 to 1.35 (the highest since Aug. 10) in the past five trading days, indicating increased demand for call options or derivative contracts that give the purchaser the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date.
The gauge crossed into bullish territory above zero on Oct. 21 and has remained bid ever since. A positive number indicates call options are drawing higher prices or demand compared to put options.
Gold is trading 0.62% higher on the day at $1,964 per ounce, the highest level since Sept. 16. The yellow metal rallied by 3.84% last week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.