Research: Oil Options Skews, U.S. and China Policy Impacts on Gold Jun 04, 2019 Taking Cues from Oil Options Skews, U.S. and China Policy Impacts on Gold By Erik Norland, Senior Economist, CME Group Oil: Are Options Skews Reliable Price Indicators? Out-of-the-money oil options skews signal fears of a slump 90% of the time Gasoline, ULSD markets also showing significant downside concerns Market slump fears are fueled by surging U.S. oil output amid shale revolution Will U.S. oil production peak in the 2020s and change sentiment on prices? Listen to Podcast Gold: Impact from U.S. and Chinese Policies Gold’s relationship with U.S. dollar and China’s renminbi has changed since 2017 Gold is now increasingly correlated negatively to dollar and positively to renminbi Divergence is due to trade war, monetary tightening in U.S. and easing in China Amicable resolution of U.S-China trade war could be bullish for gold, renminbi Read Article SEE MORE ANNOUNCEMENTS
