Silver Price Analysis: XAG/USD options market turns most bullish in two weeks

One-month risk reversal (RR) for silver (XAG/USD), a gauge of calls to puts, jumps to the highest since May 07 by the end of Wednesday, per options data from Reuters.

This goes against the white metal’s latest south-run. That said, silver prices refresh the intraday low to $27.50, down 0.92% on a day, during the second day of declines after reversing from the three-month high on Monday.

Risk reversals flash the +1.500 level for Wednesday. The positive reading theoretically indicates call options are drawing higher premium (option price) than put or bearish bets.

Technically, an upward sloping trend line from March 31 near $27.00 offers strong support to the commodity.

Also read: Silver bears taking over at a 50% mean reversion level