Gold risk reversals: Bullish bias weakest since March 22

• Risk reversals continue losing altitude, signaling falling demand for calls (bullish bets).

Gold (XAU/USD) one-month 25 delta risk reversals (XAU1MRR) are being at 0.40 XAU calls  - the lowest level since March 22. Note, the risk reversals were being paid at 2.175 XAU calls about two-weeks ago.

The sharp decline in the implied volatility premium for XAU calls (from 2.175 to 0.40) indicates falling demand for the bullish bets (calls). Further, it also states the minor corrective rally from $1,301 (May 1 low) to $1,3118 (previous day's high) will likely be short-lived.

XAU1MRR