Gold three-month 25 delta risk reversals (XAU1MRR) flipped to gold puts (bearish bets) for the first time since Oct. 10.
It is currently trading at -0.125 in favor of gold puts as opposed to 0.875 in gold calls on Nov. 6. The investor sentiment has clearly turned bearish in the last eight days, adding credence to the drop in the metal’s price from $1,236 to $1,200.
At press time, the yellow metal is trading at $1,211, having bounced off from the trendline connecting from the Aug. 16 and Oct. 8 lows.
XAU3MRR
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