Gold Options Show Sellers Lose Sizzle as Rate-Rise Dread Recedes
- Price for January $1,000 put tumbles as trading surges
- Spot gold, silver gain after Fed decision, paring annual loss
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What gold bulls feared the most -- the end of the U.S. zero-rate era -- wound up bringing some relief as traders backed away from bearish bets on metal.
A put giving owners the right to sell January futures at $1,000 an ounce, the most-traded option on Wednesday, plunged 46 percent after the Federal Reserve raised interest rates for the first time in almost a decade. Gold prices held earlier gains after the Fed announcement.