Gold risk reversals continue to collapse
There is no respite for gold bulls, indicates the drop in the risk reversals gauge to fresh 11-month low on Friday.
The XAU/USD one-month 25 delta risk reversals fell to -1.45 on Friday; the lowest level since Jan. 4, indicating the demand for the downside bets (Put options) continues to rise.
With the Fed set to hike rates this week, the yellow metal could remain under pressure as suggested the falling risk reversals. As of writing, the yellow metal is at $1248 levels.