Gold’s options market shows the strongest bearish bias in 4-1/2 months, according to data source Reuters.
One-month risk reversals (XAU1MRR), a gauge of calls to puts, fell to -0.475 in favor of puts, the lowest level since May 14.
The gauge traded at 0.625 in favor of calls on Sept. 21, having peaked at 2.125 on Aug. 7.
The decline indicates investors are adding bets (put options) to position for losses in the yellow metal.
Gold is currently trading at $1,870 per ounce, having reached a two-month low of $1,849 on Thursday. Prices reached a record high of $2,075 on Aug. 7.