Gold risk reversals adopt a bullish bias

• The options market has turned bullish on the yellow metal.
• It adds credence to bullish technical breakout on gold chart.

The latest addition to the list of gold bullish factors is the one-month 25 delta risk reversals gauge.

Risk reversals

The above chart shows the risk reversals jumped to 0.20 yesterday from the previous day's level of -0.075. The move to positive territory indicates that call options (bullish bets) are more in demand.

The data validates or adds credence to the bullish descending triangle breakout (bullish continuation pattern) and the bullish options open interest activity.