Gold Options Skew Signal Short-Term Upside Potential

It has been a tough month for gold, tumbling over 6% from its early June $1300 highs, but options traders are now positioning for a rebound.

As Bloomberg notes, the cost of bearish over bullish contracts in the $33 billion SPDR Gold Shares exchange-traded fund has dropped to the lowest level since U.S. President Donald Trump’s election.

The precious metal slumped for the fifth time in six days today, with bullion for immediate delivery selling near the lowest price in two months.