Gold risk reversals turn bearish

One-month risk reversals on gold, a gauge of calls to puts, have dropped below zero this week, indicating a bearish shift in the options market. 

The data indicates the demand for put options or bearish bets is now outstripping calls or bullish bets. Investors look to be positioning for a weakness in the safe-haven metal. 

Gold is currently trading largely unchanged on the day near $1,897 per ounce. The metal fell over 5% to $1,862 on Nov. 9 after the US drugmaker Pfizer announced encouraging results of its experimental coronavirus vaccine, triggering hopes for a swift global economic recovery in 2021. Since then, gold has continued to trade in a sideways manner below $1,900.