I’ve been talking about the growing interest in gold call options for quite some time. Now Goldman Sachs is paying attention to it as well.
According to Reuters, the bank has seen a sharp increase in demand for gold call options, as investors once again position themselves for potential upside in gold. Goldman is also seeing renewed speculative interest in COMEX gold and stronger demand for rate-sensitive gold ETFs.
This is exactly the kind of shift I’ve been watching.
This isn’t physical gold, and I wouldn’t pretend otherwise. Call options are financial positioning. But when demand for them rises this quickly, it tells us that more investors are willing to position for another move higher in gold.
And now it’s no longer just precious-metals investors and smaller gold-focused accounts talking about it.
Goldman Sachs is watching it too.
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