Escalating geopolitical tensions, inflation concerns and economic uncertainties, particularly surrounding U.S. import tariffs, have pushed gold prices close to $2,900 per ounce.

Gold options trading maintained its momentum into February, with an average daily volume (ADV) of 117K contracts, and open interest (OI) rebounding to over one million lots. This trend is also reflected in gold’s implied volatility (CVOL), which has been trending upwards, with recent spikes indicating stronger bullish sentiment and heightened market uncertainty. With volatility expected to remain elevated, Gold options continue to be an essential tool for managing risk.

Now, with an expanded listing schedule for Gold (OG) options, our monthly contracts are available for up to 22 consecutive months, with additional long-dated expirations added in June and December for the nearest 72 months for OG and 60 months for SO and HXE. Market participants can manage market risk and access our Gold options, available in both monthly and Weekly options, every day of the trading week.

In the current market environment, characterized by increased volatility, short-dated options can be a valuable addition to your portfolio. Our suite of Metals Weekly options for gold, silver and copper allows traders to gain exposure, or more precisely manage price risk, every day of the trading week.

In January, Gold Weekly options averaged over 20.4K contracts per day, reflecting a 38% year-over-year increase. Silver Weekly options averaged nearly 3,341 contracts daily, up 68% and Copper Weekly options have seen increased demand, rising 36% over the last year to now trade 667 contracts per day.

The surge in volume aligns with macroeconomic events, driving heightened demand for hedging against price volatility. These volume increases benefit new and existing market participants by enhancing market liquidity and reducing bid-ask spreads, making Metals Weekly options more accessible.

Copper (HXE) options continued their strong trading momentum into February, with an average daily volume (ADV) of 11,826 contracts. Open Interest (OI) increased by 30% over January to 150K lots, in part due to market speculation that the Trump administration may impose tariffs on copper imports into the United States, following recent 25% tariffs on steel and aluminum. Additionally, the premium of CME Group Copper futures over LME has soared to over $1,000 per metric ton, indicating that the market is pricing in a potential tariff.

We offer best-in-class screen liquidity for Copper options,in fact, the only screen for Copper options on an international exchange, and remains the venue of choice for investors and funds to gain exposure to copper. This liquidity and flexibility enable market participants to navigate both short-term price swings and long-term risk effectively.

The expectation of a third consecutive year of supply constraints, exceeding half a million ounces¹, coupled with resilient demand in the automotive sector, has pushed platinum prices toward the $1,000 per troy ounce mark. This is close to the three-month high of $1,040, which was seen earlier in February. A tighter supply outlook has increased price uncertainty, leading to a greater adoption of Platinum options.

In January, Platinum options averaged over 1,400 contracts per day, marking a 500% year-over-year increase. This momentum continued into February, with over 1,000 contracts per day, representing a 95% year-over-year increase.

Earlier this month, we introduced new Friday expirations for Platinum Weekly options.. This latest enhancement to our existing options suite provides market participants with expanded flexibility to manage short-term price risks in the PGM markets.

1. World Platinum Investment Council - Platinum quarterly https://platinuminvestment.com/supply-and-demand/platinum-quarterly

What is the likelihood that the Fed will change the Federal target rate at the upcoming FOMC meetings? How can the interest rate affect metals prices? Can I use short-term options to help manage the risk? Why keep asking questions?

Use FedWatch to track the probabilities of changes to the Fed rate, as implied by 30-Day Fed Funds futures prices for the March 18 and 19 meeting.

Below are the closest contract expiries for gold, silver and copper to help you manage risk around the Fed meeting in the most precise way.