CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

Gold risk reversals: Bullish bias is strongest since November 2009

2019-06-19 11:00

Risk reversals on gold, a gauge of calls to puts on the yellow metal, rose to their highest level since November 2009 on Wednesday, indicating investors are adding bets to position for a sustained rally in the zero-yielding metal.

One-month risk reversals (XAU1MRR) are currently trading at 2.375 in favor of call options (bullish bets) - a level last seen in mid-November 2009.

A positive number indicates the implied volatility or demand for call options is higher than that for put options. Put simply, the bullish bias is the strongest in a decade.

Gold is currently trading at $1,344 per Oz, having hit a 13-month high of $1,358 on Friday. More importantly, prices have rallied nearly 6 percent over the last 2.5 weeks.


This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

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