Gold risk reversals hit two-month high on call demand

Options market data shows that investors are adding bets to position for gains in gold, a safe-haven metal amid renewed growth concerns, and risk aversion in the global equity markets. 

One-month risk reversals, a gauge of calls to puts, rose to 0.725 on Thursday to hit the highest level since April 13, according to data provided by Reuters. 

The positive reading indicates that call options or bullish bets are drawing stronger demand than put options or bearish bets. 

Gold is currently trading largely unchanged on the day at $1,726, representing a 2.6% gain on a week-to-date basis. 

Risk reversals