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24 Jul 2020
Gold risk reversals rise on call demand
Three-month gold risk reversals(XAU3MRR), a gauge of the balance in the market between options betting on a currency rising or falling, rose to 1.55 on Thursday from 0.95 on Wednesday.
The uptick represents an increase in demand for call options or bullish bets on gold. In other words, investors are adding bets to position for stronger gains in the yellow metal.
Gold is currently trading at $1,886 per ounce, representing over 3% gains on a week-to-date basis. Prices rose to a nine-year high of $1,898 on Thursday.
