Gold-options traders shun bullish wagers as dollar rises

London

TRADERS in gold options are pulling out of bets on a rally as gains for the American dollar and US equities curb the appeal of precious metals as alternative assets.

A call giving owners the right to buy February futures at US$1,300 an ounce, Thursday's most-traded option, plunged 61 per cent last week, the most ever. The three options contracts with the most volume on Thursday were calls that fell. Gold futures posted the first weekly decline this month.