Search ForexCrunch

One-month risk reversals on gold (XAU1MRR), a gauge of calls to puts, have surged from 0.275 to 1.35 (the highest since Aug. 10) in the past five trading days, indicating increased demand for call options or derivative contracts that give the purchaser the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. 

The gauge crossed into bullish territory above zero on Oct. 21 and has remained bid ever since. A positive number indicates call options are drawing higher prices or demand compared to put options. 

Gold is trading 0.62% higher on the day at $1,964 per ounce, the highest level since Sept. 16. The yellow metal rallied by 3.84% last week.