Elevated interest in gold options after surpassing $5,000

Traders in options are betting on continued gains in gold as the precious metal surpasses $5,000 per ounce for the first time in history.

The price of gold has risen by approximately 2.5%, climbing above $5,100 amid a broad rally in metals. The move is supported by the so-called “debasement trade,” which has re-emerged as investors withdraw from government bonds and currencies and redirect capital into real assets such as gold and silver. Against the backdrop of ongoing challenges to the postwar global order by President Donald Trump, market participants are increasingly diversifying their exposures away from U.S. assets.

The implied volatility of Comex gold futures has reached its highest level since March 2020, when markets were at the peak of pandemic-related uncertainty. Volatility in SPDR Gold Shares—the largest gold-backed exchange-traded fund—has also surged, indicating that investors expect significantly higher prices.

Options trading is particularly active in bullish strategies. In Comex call spreads with April expirations and strikes around $5,500–$5,600, nearly 5,000 contracts have been traded. Other more aggressive strategies targeting $6,000 and even $6,500 are also attracting substantial interest.

As the price approaches key levels, traders are shifting positions to higher strikes. This creates additional risk of a gamma squeeze, a scenario in which market makers holding short positions in call options are forced to buy futures to hedge their exposure. This process can further accelerate the rise in gold prices.

Interest in SPDR Gold Shares options remains strong as well. Investors are buying tens of thousands of call spreads expiring in March and September, using a relatively inexpensive way to participate in a potential new rally over the coming months. Market estimates suggest that some of these positions could deliver more than fourfold returns if gold rises an additional 10%.

A similar pattern is observed in silver. Volatility and premiums on bullish options have spiked, with trading in call contracts on iShares Silver Trust and Comex reflecting heightened expectations for continued upward momentum in this metal as well.

All of this indicates that interest in precious metals as a safe-haven asset remains strong both in the short and medium term, particularly in an environment of political uncertainty, currency risks, and elevated volatility in global markets.