Gold Price News and Forecast: XAU/USD recovery rally weakens demand for put options

FXStreet Team FXStreet

Gold: Recovery rally weakens demand for put options

Gold's recent recovery rally has forced option traders to rethink their bearish bias. The yellow metal bottomed out near $1,515 on March 20 and was last seen trading near $1,650 per ounce, representing a 0.38% gain on the day. Prices hit a high of $1,678 on Tuesday.

With the price rise, one-month 25 delta risk reversals, a gauge of calls to puts on the safe-haven metal, has recovered from the multi-year low of -4.5 to above zero, indicating a bearish-to-bullish change in the sentiment in the options market.

Gold Price Analysis: Price action is tentative at the intraday support zone of USD 1642.00

Gold is trading sideways on Tuesday as equities push higher once again. Today has been one of many COVID-19 headlines and it kicked off with the Eurogroup not being able to agree on a deal to fund relief surrounding the current coronavirus related economic woes. Later in the session, there were some comments from French Finance Minister Le Maire who stated: "there is an agreement with German and other countries that we need an EU fund to finance economic recovery". He then went on to say an agreement is needed within 24 hours and failure is not an option.

GBP/USD: Daily gains remain capped by 1.3650

GBP/USD leaves behind Monday’s pessimism and advances marginally on Tuesday. Cable’s humble gains, however, appear to have met quite a decent resistance in the 1.3650 zone for now, in a context of a slight selling pressure hovering around the Greenback.

EUR/USD picks some pace, retests 1.1670

EUR/USD advances modestly and revisits the 1.670 zone on turnaround Tuesday. The pair’s slight advance comes after two daily drops in a row and follows the humble decline in the US Dollar, while investors gear up for upcoming US data and the Jackson Hole Symposium.

Gold treads water around $4,650

Gold navigates the middle of its daily range near $4,650 per troy ounce on Tuesday. The lack of clear direction in the yellow metal comes on the back of the widespread cautious tone among market participants, a mildly offered stance in the US Dollar and a marked decline in US Treasury yields across the curve.

Crypto Today: Bitcoin soars past $80K as Ethereum and XRP hold gains

Bitcoin (BTC) is trading above $80,000 on Tuesday. This is the highest level the Crypto King has traded since mid-May, underscoring a positive shift in investors' risk-on sentiment, liquidity conditions and the technical outlook.

Nvidia earnings: A quick look at expectations

The 2026 Q2 earnings season is nearly over for S&P 500 members, with the reporting cycle notably positive. But looming large this week is none other than AI-favorite NVIDIA (NVDA) , whose results will wrap up the reporting cycle for the Magnificent Seven group as well.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.