Risk reversals on Gold hit the lowest level since June 12. The drop in the risk reversals indicates weakening demand for call options. The implied volatility premium for the bullish bets on gold or call options has dropped sharply over the last two weeks, a sign the investors are expecting a correction in the yellow metal. One-month risk reversals (XAU1MRR) on gold, a gauge of calls to puts on the safe-haven metal, fell to 1.775 on Tuesday, the lowest level since June 12, having topped out at 3.55 on Aug. 5. At press time, the gauge is seen at 1.85. The retreat from 3.55 to 1.775 represents a drop in demand or implied volatility premium for call options. The data reinforces the case for a pullback to $1,480 put forward by Gold’s technical charts. As of now, the yellow metal is changing hands at $1,501. XAU1MRR FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/INR technical analysis: 2-week old support-line, 10-DMA cap immediate declines FX Street 4 years Risk reversals on Gold hit the lowest level since June 12. The drop in the risk reversals indicates weakening demand for call options. The implied volatility premium for the bullish bets on gold or call options has dropped sharply over the last two weeks, a sign the investors are expecting a correction in the yellow metal. One-month risk reversals (XAU1MRR) on gold, a gauge of calls to puts on the safe-haven metal, fell to 1.775 on Tuesday, the lowest level since June 12, having topped out at 3.55 on Aug. 5. At press time, the gauge is seen at 1.85.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
