Gold slides below $1,295 as options turn sharply bearish

Gold fell below the $1,295 support level, sinking to a low near $1,271, and the move coincided with a surge in put‑option buying on the GLD ETF, signaling heightened bearish sentiment among traders【1】.

Technical breakdown of gold’s decline

The hourly chart shows two bearish trend lines converging near $1,275‑$1,279, with the 50‑hour simple moving average also acting as resistance. After breaking the $1,300 and $1,295 supports, gold slipped beneath the $1,285 level and the 50‑hour SMA, eventually testing the 23.6% Fibonacci retracement of the recent $1,290‑$1,271 swing. Without a clear break above $1,278‑$1,280, further downside to the $1,270‑$1,271 area—and potentially $1,265—remains likely【1】.

Options market reflects deepening bearish bets

GLD’s options flow turned sharply bearish on Wednesday, with traders selling more calls than buying and allocating $130 million of the $200 million premium to puts. The most active put contract was the in‑the‑money 380‑strike expiring the same day, while the second‑most active was a 240‑strike set to expire in June 2028, a position that implies a roughly 40% price decline over the next two years【2】.

Broader market context

The gold sell‑off came as the U.S. dollar firmed, putting additional pressure on commodity prices. Crude oil, while still above $62, faced resistance near $64.70, suggesting a broader risk‑off environment across commodities【1】. Equity markets felt the ripple, with risk‑averse investors shifting toward safer assets amid the metal’s technical breakdown and the aggressive put positioning.

What to watch

• Key support levels: $1,270‑$1,271 and $1,265 on the gold chart.
• Options activity: Volume and premium on GLD puts, especially the 380‑strike and 240‑strike contracts.
• Upcoming data: U.S. inflation releases and Federal Reserve commentary later this week, which could influence the dollar and, by extension, gold’s trajectory.

The breach of $1,295 and the surge in put buying suggest that traders expect further downside, but the next test of $1,278‑$1,280 will be crucial to confirm whether the bearish trend can sustain or a reversal may emerge.