One-month risk reversals on gold continue to fall on put demand.
According to data source Reuters, the gauge is currently trading at -0.85 in favor of puts (bearish bets), having peaked at 1.35 in favor of calls (bullish bets) on Nov. 6.
The sharp slide is the result of investors adding bets to position for losses in the safe-haven metal amid increased expectations for swift global economic recovery on potential coronavirus vaccines.
Gold is trading at $1,768 per ounce at press time, the lowest level since Sept. 6. The metal is down over 5.5% on a month-to-date basis.