Gold: value of call options (bullish bets) surges

Gold one-month 25 delta risk reversals (XAU1MRR) rose to 0.75 yesterday – the highest level since Nov. 7 – up sharply from the previous day's print of 0.25.

The positive number indicates the demand or implied volatility premium for gold calls is higher than that of puts.

Simply put, the demand or value of the bullish bets increased sharply, validating the yellow metal's jump to a five-month high of $1,244.

XAU1MRR