Gold has gained more than 8% in August, recovering above the $4,300 level after losing over 25% between March and June. Options investors are now shifting toward bullish bets rather than downside protection, with skew notably favoring calls over puts. Flows have also reversed, with gold ETFs adding $3 billion in July, ending two months of outflows. Traders nonetheless remain partially hedged with purchases of September $350 puts at $0.62. The Federal Reserve’s upcoming meetings will be the key catalyst to validate these bullish positions.
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