What does the strengthening bearish bias in the options market also mean for investors? The 16 March XAUUSD Technical Forecast answers the question.
16 March, GKFX – Gold (XAU/USD) one-month 25 delta risk reversals (XAU1MRR) are being paid at 0.25 XAU puts vs. 0.20 XAU puts yesterday and 0.23 XAU calls on March 7.
The rise in the implied volatility premium of XAU puts indicates rising demand for bearish bets. Also, the chart shows the risk reversals are creating a head and shoulders pattern, meaning the downside bias is likely to strengthen further.
16 March XAUUSD Technical Forecast
The strengthening bearish bias in the options market also means investors are expecting the yellow metal to revisit recent lows around $1,310-$1,300 soon.
This article 16 March XAUUSD Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.