Gold: Bullish bias is strongest since early September

• Gold (XAU/USD) clocked a seven-day high of $1,342 in Asia. 
• Risk reversals indicate options market is bullish on gold. 

Gold (XAU/USD) hit a one-week high of $1,342 in Asia and could extend the rally further to the recent high of $1,353, as indicated by strengthening bullish bias in the options market.  

As of writing, the one month 25 delta risk reversals (XAU1MRR) are being paid at 1.3 XAU calls - the highest level since September 4 vs. 0.5 XAU puts on March 20. The sharp rise in the implied volatility for XAU calls (buy XAU) indicates the investors expect the yellow metal is set to extend the ongoing rally from the April 6 low of $1,320. 

XAU1MRR