Gold Price News and Forecast: XAU/USD stabilises near its lows
|Gold options market most bearish since May 14
Gold's options market shows the strongest bearish bias in 4-1/2 months, according to data source Reuters. One-month risk reversals (XAU1MRR), a gauge of calls to puts, fell to -0.475 in favor of puts, the lowest level since May 14.
The gauge traded at 0.625 in favor of calls on Sept. 21, having peaked at 2.125 on Aug. 7. The decline indicates investors are adding bets (put options) to position for losses in the yellow metal.
Lots of noise, not much substance
Gold contented itself to follow intra-day moves on equity markets overnight, suggesting that the buy the dip mob remains side-lined for now, either licking their wounds after going long at $1900.00 an ounce, or expecting better levels to buy more.
Gold probed the downside during the New York session, but support at its 100-DMA at $1845.50 held firm and is key pivot level for today's session. Gold finished the session 0.25% higher at $1867.00 an ounce, in line with the non-descript close on US equity markets.
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