“Options betting on a 10 percent drop in the gold ETF’s shares cost 3.34 points more than contracts wagering on a 10 percent gain. The relationship known as skew sits 40 percent above its 12-month average of 2.38,” Bost reports for Bloomberg.
Gold also got a lift Monday after India eased import restrictions on the yellow metal. The Reserve Bank of India has ended the requirement that mandated gold importers prove that at least 20% of bullion brought into the country be used for exports. India recently retook the top spot among the world’s gold importers from China.
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ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.