Gold Price News and Forecast: XAU/USD risk reversals flip bearish

FXStreet Team FXStreet

Gold risk reversals flip bearish

One-month risk reversals on gold, a gauge of calls to puts, fell into the negative territory on Wednesday, indicating increased demand for put options or a bearish shift in the options market sentiment. On Wednesday, risk reversals traded at -0.15 in favor of XAU puts versus 0.075 in favor of calls earlier this week.

Gold Price Analysis: XAU/USD flirts with immediate support line around $1,885 amid Pence-Harris faceoff

Gold prices drop to $1,886.46, down 0.06% intraday, amid the early Thursday’s trading. The bullion recently gained momentum as the US Vice Presidential Debate helped the US dollar while also defending the market’s risk-tone. In doing so, the yellow metal attacks an upward sloping trend line from Wednesday while staying below 200-HMA. As a result, sellers are likely to eye an eight-day-old support line, at $1,876 now, during the further declines.

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