Gold - Risk reversals drop to 11-month low

  • Demand for gold puts continues to rise.
  • Gold prices trade below $1250 levels.

Gold (XAU/USD) one month 25 delta risk reversals gauge fell yesterday to -1.325; the lowest since early Jan.

Risk reversals

  • The decline indicates increased demand for the bearish bets, i.e. put options.

As of writing, the metal was trading at $1249/Oz levels. Prices hit a five-month low of $1243.80 yesterday on US tax reform optimism.

The metal could extend losses today if the US wage growth numbers due today at 13:30 GMT better estimates.

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