Investors Buy $130 Million of SPDR Gold Shares Puts on 40% Drop by 2028
GLD•SPDR Gold Shares ETF has fallen 25% from its February intraday record as gold prices drop 26.5% since January, erasing $9.75 trillion in value. Traders have purchased $130 million of puts tied to a 240-strike expiring June 2028, wagering on a further 40% collapse.
1. Bearish Options Activity
GLD options volume surged to $200 million in a single session, with $130 million allocated to puts. Eight of the ten most active contracts were puts, led by a 240-strike expiring in June 2028 at $11.50, signaling a bet on a roughly 40% drop from current levels.
2. ETF and Gold Price Declines
SPDR Gold Shares has slid 25% since its February intraday high, as gold itself is down 26.5% from its January peak, erasing an estimated $9.75 trillion in market value. Silver underperformed with a 47.7% drop, shedding about $3.2 trillion, contributing to a combined $12.95 trillion loss over 132 days.
3. Official-Sector Selling and Outlook
Central banks in Turkey, Qatar, UAE and Saudi Arabia have offloaded gold to shore up currencies and fund expenditures, while higher Indian import duties have dampened demand. Citigroup cut its three-month gold forecast to $4,000 per ounce, citing limited near-term catalysts, though some analysts argue ongoing conflicts could eventually support prices.
