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.

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