Gold below 100-day MA, but risk reversals retain bullish bias

• Gold fell below 100-day MA on Friday, signaling technical weakness.
• However, sentiment in the options market remains bullish.

The yellow metal breached the 100-day MA support on Friday, indicating the recovery from the Oct. 27 low of $1263 has ended. However, the risk reversals still favor the bulls.

Risk reversals

The one-month 25 delta risk reversals gauge turned positive on Nov. 9 and improved to 0.225 on Friday. It indicates the bullish bias in the options market strengthened despite the drop below the key technical support.