Analysis: Gold bulls are unafraid of a historic pullback, increasing bets on long-term bullish gold options

PANews February 16 News, according to Jinshi reports, some steadfast gold bulls are not concerned about the historic pullback in precious metals and still expect gold prices to surge again to unprecedented levels. At the end of January, New York gold futures prices temporarily broke the historic high of $5,600 per ounce, but the next day experienced an unprecedented plunge. During this period, one or several investors began buying December-expiring call spread options with strike prices of $15,000/$20,000 on the COMEX, a subsidiary of the Chicago Mercantile Exchange. Even after the gold price stabilized around $5,000, this position continued to increase, currently reaching about 11,000 contracts. “After a technical correction, seeing so many deep out-of-the-money call spread open interest contracts is truly surprising,” said Akash Doshi, Head of Global Gold and Metals Strategy at State Street Investment Management. “Some traders might see this as a cheap lottery opportunity.”