Gold risk reversals flip bearish

One-month risk reversals on gold, a gauge of calls to puts, fell into the negative territory on Wednesday, indicating increased demand for put options or a bearish shift in the options market sentiment.

On Wednesday, risk reversals traded at -0.15 in favor of XAU puts versus 0.075 in favor of calls earlier this week.

The metric bounced from -0.475 to 0.075 last week. Essentially, risk reversals had turned bullish but the change in sentiment was short-lived.

Gold is currently trading at $1,884 per ounce, representing a 0.10% drop on the day.