OctaFX | OctaFX Forex Broker
Open trading account
Back

Topped out? Value of gold calls has backed off from eight-month highs

Gold one-month 25 delta risk reversals (XAU1MRR) are currently trading at 1.7 in favor of calls, having hit an eight-month high of 2.2 on Dec. 27.

The pullback from 2.2 to 1.7 represents a drop in the implied volatility premium or demand for gold calls (bullish bets).

Simply put, the investors are no longer adding bets to position for further strength in the safe haven yellow metal.

Notably, the data validates the bearish outside-day charted by gold on Friday.

XAU1MRR

UBS' Weber: investors have gone too bearish on US economy - BloombergTV

In a television interview with Bloomberg TV, UBS Chairman Axel Weber notes that markets seem to have rolled too far bearish given the condition of the
Read more Previous

Markets: What is most important in the week ahead? – Nordea Markets

Analysts at Nordea Markets point out that a lot of Fed speakers will have the chance to address the shaky global markets. Key Quotes “The FOMC meeti
Read more Next
Start livechat