Gold risk reversals show put bias is strongest since March 20

Gold (XAU/USD) risk reversals show demand for put options (sell gold) continues to rise.

Omkar Godbole FXStreet Contributor

The one-month 25 delta risk reversals (XAU1MRR) are being paid at 0.525 XAU puts - the level last seen on March 20. About two weeks ago, the risk reversals were flashing a strong XAU call (bullish) bias and were being paid at 1.05 XAU calls.

The options data add credence to the drop in gold to a seven-month low of $1,238 and indicates the investors are likely expecting a further drop in the yellow metal.

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.