One-month risk reversals on gold (XAU1MRR), a gauge of calls to puts on the yellow metal, has jumped to 2.875 this Friday morning in Asia – the highest level since March 2008 – surpassing the high of 2.50 seen in November 2009.
The positive number indicates the premium for call options (bullish bets) is higher than that for put options (bearish bets).
Put simply, the bullish bias is now strongest in over a decade and investors are adding bets for to position for further gains in the yellow metal, which is currently trading above $1,400 per Oz – the highest level since 2013.
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