At the end of October, I warned that gold looked set to retrace higher and recover some of its losses from the record high. While bulls dragged their heels initially, they finally regained control of prices with conviction on Monday. Gold futures jumped 2.8% at the start of the week, marking their best daily performance in three weeks. While we’ll likely see the usual extrapolation of this move and fresh calls for new highs, I doubt we’ll get a clean run from here given current positioning in the options market. The lower panel shows 25-day risk reversals for gold over the next week (blue histogram), month (blue ... (full story)