One-month risk reversals on gold, a gauge of calls to puts, crossed above zero and reached a one-month high of 0.325 on Wednesday, signaling a bearish-to-bullish trend change.
In other words, the rise above zero is the result of increased demand for call options or bullish bets. Essentially, investors are now adding bets to position for a rally in gold.
The yellow metal is currently trading at $1,913 per ounce, representing a 0.54% drop on the day. The proven store of value asset is struggling to draw bids with the dollar gaining ground amid losses in the Asian stock markets.