After a big rally earlier this week, the gold market showed a more significant pullback, but after maintaining the $1900 / oz mark, there is no doubt that it is still bullish.
From the options market, investors still expect gold prices to continue to rise.
The factors that pushed gold prices to record highs last year are still largely there this year, including extremely loose monetary policy by central banks after the outbreak hit the global economy, market risk aversion, the weakness of the dollar, and so on.
Michael Khouw, chief investment officer of Optimize Advisors, said SPDR gold ETF (GLD) trading volume soared to more than twice the average daily trading volume, and the bullish bet was three times the daily average. The most active option was the call option in January.
"this option expires in more than a week, and there are currently 50,000 long options worth $1.54."
By the time these bets expire on Friday, the price of GLD has risen to $186.54 and is currently trading at $179.9.
In other words, investors expect the price of gold to rise by about 2.5% over the course of more than a week.
