Gold risk reversals turn bullish
|- Gold risk reversals are printing positive on call (bullish bets) demand.
- Risk reversals add credence to signs of bull reversal seen in technical charts.
Gold (XAU/USD) risk reversals have turned positive for the first time since July 10, signaling the demand for call options is outpacing the demand for puts.
The XAU/USD one-month 25 delta risk reversals rose to 0.15 today, the highest reading since June 18. The sharp rise from the recent low of -0.80 seen on Aug. 3 indicates the options market has turned bullish on the yellow metal.
The data validates the signs of bull reversal seen on the technical charts. So, the yellow metal looks ripe for a corrective rally could be in the offing. At press time, gold is changing hands at $1,209.
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