Options traders in the SPDR Gold Shares (GLD) ETF have turned sharply bearish. One popular contract is now betting that gold will fall another 40% by June 2028.
The fund is down 25% from its intraday record in February. Gold itself has lost 26.5% since its peak in January, losing $9.75 trillion in market value.
Gold and silver lose $12.95 trillion in 132 days
Precious metals have been sold off aggressively, as has happened between the US and Iran War reshapes safe haven flows. Taurus theory puts Combined gold and silver losses amounted to $12.95 trillion in just 132 days.
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silver He fared worse Of gold. The metal fell by 47.69%, losing $3.2 trillion in value.
Amid this, banks have also become cautious. Citigroup reduced its shares for three months Gold target to $4,000 an ounce from $4,300.
“We see limited catalysts for a sustained upward movement in the very near term,” the analysts said.
Bearish bets on gold now extend to 2028
Bearish sentiment also extended to the options market. Of the $200 million in GLD options premiums traded Wednesday, $130 million was tied to put options, CNBC reported, citing data from ThinkOrSwim and SpotGamma. 8 of the 10 most active contracts were placed, and most were bought rather than sold.
The second most popular contract was a 240-strike contract expiring in June 2028, with a price of $11.50. This position makes a profit if GLD declines approximately 40% from current levels.
Nigam Arora, founder of the Arora Report, blamed the sell-off in the formal sector for the decline. He also cited Higher India Import duties and Stop loss is triggered at $4,400 or less.
He added: “The Turkish Central Bank is selling gold and buying dollars in an attempt to support the lira, and the Gulf countries – Qatar, the United Arab Emirates and Saudi Arabia – need the money for the war, so they are selling gold as well.” He said.
However, not everyone expects this decline to continue. Economist Peter Schiff said the prolonged struggle favors gold as the metal retests its March lows.
“Gold is down more than $100, trading below $4,150. It is retesting its March 23 low of $4,098. This bottom was created the first time Trump claimed the Iran war would end soon, which brought gold back above $4,800. But a long, drawn-out war is much more bullish for gold than a quick end.” male.
For now, options traders appear to be set for further declines. The rise in selling activity, combined with weak price targets from major banks, suggests that many investors expect the precious metals sell-off to continue.
However, with geopolitical tensions continuing to rise and some analysts viewing the recent decline as temporary, gold’s next move may depend on whether safe-haven demand can continue. It will reassert itself in the coming months.
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this post Gold Options reveals a bet on another 40% collapse by 2028 appeared first on BeInCrypto.
