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.  

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