Options market expecting punchy moves for gold ...Middle East

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Options market expecting punchy moves for gold
Overnight volatility for gold has jumped to 23%, which is the highest since May 2023.Given the recent run higher in gold it shouldn't surprise that markets are getting a bit uncertain heading into CPI.We spoke about this yesterday as well, but it's worth flagging again that the options market is getting a bit cautious of the recent run higher.Below we can see that while spot (blue) have continued to grind higher, risk reversals (red) have pushed lower by quite a bit (showing more put activity).Hence a beat in CPI today might offer short-term traders the best bang for their buck.However, a lot of the recent upside in commodities has been attributed to inflation risks. Thus, even though a beat

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