Investing.com – Gold prices rose on Thursday, but failed to hit the $1,250 level targeted by option holders, although there could still be a liquidation in the next session by those not wanting to put money up to convert their winning options into futures, analysts said.
“I think there’ll be some 200,000 contracts that will get pulled out tomorrow and that’s basically the options that are in the money but do not want to face margin calls to have those converted to futures,” said George Gero, precious metals analyst at RBC Capital Markets in New York.
December gold futures on the COMEX division of the New York Mercantile settled up $1.30 at $1,232.40 a troy ounce. The session high was $1,242, falling $8 short of the peak targeted by options that expired on Thursday.
Gold prices have gained more than 3% so far this month, on track to break a six-month losing streak, the length of which was last seen in the August 1996-January 1997 period.