Gold markets have internationalized dramatically in the past five years with price discovery in OTC and exchange cleared markets becoming more inextricably linked than ever.
Markets become healthier as global pools of risk converge. Participation from EMEA and APAC has grown materially as liquidity in COMEX Gold options has improved during non-US hours. The international session has proved to be especially important, given that new highs above 1600, 1700, and 2000 were all recorded during APAC trading hours.
With price discovery happening during international hours, the round-the-clock liquidity of futures options is an important feature that ETF options lack. It is also interesting to note that while gold has traded in a very wide range, and at times, near the 2000 level, volatility has steadily declined to the three-year average level of 14%.
COMEX markets have matured in such a way that the APAC region has begun to utilize both Monthly and Weekly Gold options consistently. As the trend of global liquidity growth continues, COMEX Precious Metal options markets are fast becoming the benchmark for global price discovery.
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