Gold risk reversals - mildly bullish, but struggles to build momentum

• Risk reversals signal bullish exhaustion.
• Gold (XAU/USD) prices continue the range bound activity.

One-month risk reversals

• Risk reversals gauge turned positive/adopted bullish bias on Nov. 9 but is struggling to hold above 0.20.
• It could an indication that the bullish bias in the options market is weakening.

It could be due to lack of bias in the gold prices. The yellow metal continues to trade sideways in the range of $1260 to $1290.

Prices would need to break above $1300 in order to revive interest in the gold call options and push risk reversals above the recent high of 0.20.