Gold risk reversal hits lowest since March 2020 on put demand

Gold's one-month risk reversal, which measures the spread between call and put prices, fell to -1.80 on Friday – the lowest level since March 2020 – extending the decline from the Feb. 1 high of 1.60, indicating increased demand for put options. A put option gives the purchaser the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. Therefore, one-month risk reversal's drop to lowest since March suggests investors are adding bets...
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