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Demand for Gold Dec USD 1150 put is on the rise

FXStreet (Mumbai) - Gold option volatility soared to the highest level this year as investors race to protect their positions if the rout in Gold prices continues in the days ahead.

Gold prices dropped 2% on Friday, its biggest decline since July, which saw renewed interest in the Gold options contract. Meanwhile, the CBOE Gold ETF volatility Index soared 19% on Friday to 21.46 levels. Such a sharp rise in the VIX is usually seen when the markets are worried about a further fall in the underlying asset.

On the Comex, heaviest trading is seen in December gold puts with a strike price of USD 1150/Oz. Currently prices are just USD 15 away from the USD 1150/Oz levels. Meanwhile, the second most active contract is USD 1100 Put.

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