Stable Gold Option Activity Amid Macro Pressures

Data from CME on gold options activity in September suggests stability amid macroeconomic pressures, according to ForexLive (InvestingLive). The metal ended the month below its August peak by about 9%, reflecting pressure from higher U.S. Federal Reserve interest rates, a stronger dollar, and elevated Treasury yields. Absent immediate rate cut expectations, buyers were limited, keeping market sentiment in check. Monthly and weekly option activity levels remained stable with around 52,000 contracts of monthly options traded daily and approximately 25,000 of weekly options. The CME gold volatility index has eased from its earlier peaks but remains high compared to long-term averages, indicating a well-ordered decline rather than disorderly selling. The performance in precious metals correlates with the dollar's strength and Treasury bond yields, suggesting that future moves in Fed interest rate paths or bond yields could be decisive for gold prices. Meanwhile, silver experienced a slight price drop and lower trading activity, following similar macroeconomic pressures, with inflation concerns being the main offset factor. Source original: ForexLive (InvestingLive).