Traders are actively debating gold’s future, as options activity in the SPDR Gold ETF (GLD) and VanEck Gold Miners ETF (GDX) reveals contrasting sentiments. On Tuesday, GDX surged over 4% despite a decline in gold futures, with bullish options flows dominating—call volumes outpacing puts by more than 5 to 1. Notably, over 10,000 calls traded at the ask, signaling strong buying interest, particularly in the 100 and 110-strike calls expiring June 18.
However, a significant player took a bearish stance, investing over $1 million in thousands of 85-strike puts expiring July 17, suggesting skepticism about a substantial recovery in gold prices. This divergence highlights the uncertainty surrounding gold’s trajectory amidst geopolitical tensions and a complex interest-rate environment.
For market professionals, the contrasting options flows in GDX and the bearish sentiment in Newmont Mining could indicate a pivotal moment for gold and its related equities, warranting close monitoring of upcoming price movements and economic indicators.
Source: cnbc.com