Gold Options Traders Chase More Upside After 8% August Gain

Gold options traders are increasingly positioning for further upside after gold recovered from a weak spring and posted a strong August rally. Susquehanna says skew has shifted from downside put protection toward upside call buying, indicating traders are paying for participation in more gains rather than hedging for a decline. Gold had fallen sharply in March through June, but July brought a rebound with about $3 billion flowing into gold ETFs. In August, gold has climbed back above $4,300 and is up more than 8% month to date. The options market reflects this renewed optimism, though some downside hedging remains. The next major catalyst is the Fed: a dovish pause could support the bullish trades, while a hawkish surprise could pressure gold and leave upside calls out of the money.