Daily Gold Market Report

Gold’s Call Options Volatility Hits Historic Lows:
A Prelude to a Market Rally?

(USAGOLD – 2/26/2024) Gold prices are down slightly to start the week. Traders are looking for a fresh fundamental spark to drive price action. Gold is trading at $2026.89, down $8.51. Silver is trading at $22.55, down 40 cents. Tavi Costa of Crescat Capital recently highlighted on Twitter/X a significant drop in the implied volatility of call options on gold, marking one of its lowest points in history. This scenario is reminiscent of a past period that preceded a 75% rally in gold prices over subsequent years. Despite such potential gains seeming modest in the current speculative climate, the tweet suggests that a similar movement now could trigger long-awaited significant trends. Furthermore, Tavi points out a historical pattern where gold cycles align with those of other commodities, positively affecting the valuations of resource-rich emerging markets.