Gold Price Driven by Options Activity as $4,600 Threshold Looms

Gold prices are nearing $4,600 an ounce as investors turn to gold call options in response to macro surprises.

According to Goldman Sachs, demand for these contracts has 'risen sharply' as investors seek hedges against unexpected events.

This surge in call buying can lead to a self-reinforcing cycle where dealers who sold the calls hedge by buying gold as prices rise, adding momentum to spot prices around key strike levels.

The $4,600 level has become a focal point for options traders, with Goldman noting that breakouts are more likely as spot approaches popular strike prices.