Gold risk reversals - downside bias strengthens

• Risk reversals show a rise in demand for puts (bearish bets). 

Gold (XAU/USD) one-month 25 delta risk reversals (XAU1MRR) are being paid at 0.175 XAU puts vs. 0.125 XAU puts yesterday and 0.225 XAU calls on March 7. 

The data shows the implied volatility premium for XAU puts (bearish bets) has increased substantially over the last few days and currently stands higher than the implied volatility premium for XAU calls (bullish bets) -  a sign the bearish bets are in demand. 

XAU1MRR