- Risk reversals rise, indicating increased demand for XAU/USD (gold) calls.
The broad-based USD weakness post-Fed lifted the yellow metal to a five-week high of $1,350 last week.
The surge in prices has boosted demand for the XAU/USD calls (buy gold), the risk reversals indicate. For instance, the one-month 25 delta risk reversals (XAU1MRR) are being paid at 0.6 XAU calls vs. 0.5 XAU puts on March 21.
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