Gold risk reversals shed bullish bias, turns neutral

Omkar Godbole FXStreet Contributor

The one-month 25 delta risk reversals gauge has shed bullish bias, which indicates that gold's repeated failure to scale the $1300 mark has not gone down well with the investors.

Risk reversals

The risk reversals adopted bullish bias on Nov. 9 but quickly topped out at 0.225 on Nov. 10. Currently, it stands at zero (neutral).
Bulls need progress soon, i.e. prices need to break above $1300 else the risk reversal gauge could turn negative, highlighting the increased demand for gold put options (bearish bets).

Author

Omkar Godbole

FXStreet Contributor

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

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD hits daily lows near 1.1630

EUR/USD now loses traction and slips back to the area of daily lows near 1.1630 on the back of the incipient recovery on the US Dollar. On the data front, the ADP weekly report surprised to the upside in the week to November 15 (+4.75K jobs).

GBP/USD comes under pressure, targets 1.3300

GBP/USD is now facing renewed selling pressure and is giving away initial gains, trading at shouting distance of the 1.3300 region amid some pick up in the demand for the Greenback post-ADP data.

Gold trims losses, challenges $4,200

Gold maintains its bid bias on Tuesday, although it is now losing some momentum in response to the modest bounce in the US Dollar following firmer prints from the weekly ADP data. Meanwhile, investors continue to see the Fed lowering its interest rates on Wednesday.