Gold risk reversals: Bullish bias weakest since April 9

Gold (XAU/USD) risk reversals continue to retrace bullish bias.
Adds credence to the recent decline in gold prices.

Omkar Godbole FXStreet Contributor

Gold one-month 25 delta risk reversals (XAU1MRR) are being paid at 1.025 XAU calls (lowest level since April 9) vs the recent high of 2.20 XAU calls.

The drop in the implied volatility premium for XAU calls indicates falling demand for the bullish bets or weakening bullish bias. The data also adds credence to the recent decline in gold prices from $1,355 to $1,317 and indicates the investors expect a further pullback in gold prices.

XAU1MRR

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.