Gold rally has revived interest in bullish bets, show risk reversals

• XAU/USD (Gold) risk reversals turns positive.
• The metal trades at a 3-week high.

Gold's rally to a three-week high of $1,355.54 seems to have revived interest in the bullish bets (call options), indicate options data.

The one-month 25 delta risk reversals (XAUIMRR) gauge has increased to 0.175 today. A week ago the gauge stood at -0.275. The positive figure indicates the premium claimed by XAU calls is higher than XAU puts, i.e. demand for calls is increasing.

The risk reversals indicate the rally in the spot has substance and could be extended further in the days ahead.

XAU1MRR