Gold’s rally and Ag options’ upside skew Aug 02, 2019 What’s driving gold prices, Ag options’ upside skew By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group Gold: Driven by Rates Gold has been marching higher since Fed’s pause in rate hikes A rate cut could add to gold’s momentum, but can it hit $1,600? Worsening of trade tensions could be supportive for safe-haven gold Is gold’s role in portfolio diversification diminishing? Watch video The Rationale for Ag Options’ Upward Skew Out-of-the-money Ag call options tend to uniquely cost more than puts Soybean Oil and Wheat options traders do well in anticipating price direction Soybean Oil, Wheat prices tend to rise when options skews are highly positive But extremely positive skews in Soybeans and Soymeal were often a sell signal Read article SEE MORE ANNOUNCEMENTS
