Long positions in gold bet on forward call options, fearless of historic pullbacks

Some steadfast gold bulls remain optimistic about the future performance of gold prices after experiencing a historic pullback in precious metals, and are betting on it reaching new highs. At the end of January, the price of New York gold futures broke through a historic high of $5600 per ounce, but then fell sharply. During this period, investors purchased call option spread contracts with strike prices of $15000 and $20000 on the New York Mercantile Exchange (COMEX) under the Chicago Mercantile Exchange. Despite the consolidation of gold prices around $5000, the position continues to increase, with approximately 11000 open contracts currently held. Akash Dohi, Global Head of Gold and Metals Strategy at State Street Investment Management, stated that it is surprising to see so many deep virtual call options open after a technical correction, and some traders may view it as a low-cost, high-risk opportunity.