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Why It Matters
Robust options volumes signal heightened market uncertainty and provide investors with granular tools to manage price risk, while policy shifts in copper could reshape trade flows and pricing dynamics.
Key Takeaways
- •Gold options ADV hit 73K monthly, 30K weekly.
- •Gold price tops $5,000/oz, volatility modestly rising.
- •Copper options ADV 9.4K monthly, 752 weekly, price $5.80/lb.
- •Potential US copper duties 15% 2027, 30% 2028.
- •Weekly metal options ADV near 35K, expanding mid‑week use.
Pulse Analysis
Gold’s breakout above $5,000 an ounce has reignited interest in its derivatives market. The surge in monthly and weekly options volumes reflects traders’ desire to lock in gains and hedge against sudden macro‑economic shocks, even as the implied volatility curve shows only a modest uptick. This dynamic creates a fertile environment for institutional players to deploy sophisticated strategies, from delta‑neutral spreads to volatility plays, reinforcing CME’s role as the primary venue for precious‑metal risk management.
Copper’s early‑year momentum is underpinned by a tight physical market and the prospect of new U.S. import duties. With the Department of Commerce poised to announce a phased tariff regime—15% in 2027 and 30% by 2028—market participants are turning to options to buffer against potential price spikes and supply disruptions. The robust ADV for both monthly and weekly contracts underscores a proactive hedging stance, as investors seek to preserve exposure while navigating policy‑driven uncertainty.
Weekly options across gold, silver and copper have evolved into a daily tactical instrument, as evidenced by the near‑35 K contracts traded in January. The shift toward Monday‑through‑Thursday expiries enables traders to fine‑tune risk around specific macro events, from Fed announcements to geopolitical developments. This granular flexibility not only deepens liquidity but also positions weekly options as a cornerstone of modern metals portfolios, likely driving further product innovation and market participation in 2026.
January 2026 Metals Options Report
Rising gold prices and volatility drive options demand
Gold (OG) options started 2026 on strong footing, with the month‑to‑date average daily volume (ADV) hitting 73 K for monthly contracts and 30 K for weekly tenors. This follows a record‑setting Q4 in 2025, reflecting continued interest across both products. Gold prices advanced above $5,000/oz, hitting a new all‑time high, supported by a weaker dollar and shifting U.S. and EU geopolitical dynamics.
Despite the underlying gold price (dotted light‑blue line) remaining at record peaks, the gold CVOL (solid blue line) highlights only a slight upward trend in implied volatility during January. This suggests sustained demand for gold options, as the market continues to anticipate significant price movements. With rates left unchanged, the FedWatch tool captures the latest market positioning, suggesting that expectations for a near‑term cut are unlikely.
Available every trading day in both monthly and weekly contracts, gold options enable market participants to dynamically respond to geopolitical shifts and economic data releases, providing greater flexibility in managing market risk.
Image 1: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
Image 2: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
Image 3: Figure 3 – Gold CVOL History (GCVL)
Source: Quikstrike
The red metal has entered 2026 with solid momentum
Copper (HXE) options volumes were off to a good start in January, with ADV reflecting continued interest into year‑end. Monthly ADV reached 9.4 K contracts, while weekly options saw an uptick to 752 contracts per day. Underlying copper prices traded near $5.80/lb, buoyed by stronger demand for real assets and supply constraints in Chile.
The copper market faces looming policy risks as the U.S. Department of Commerce prepares to release findings on cathode imports early this year, which could set the stage for significant trade barriers. Reports suggest a phased duty schedule of 15 % in 2027 and 30 % by 2028, introducing a new layer of structural uncertainty to the long‑term outlook.
Despite these cross‑currents, the volumes for both tenors suggest investors are confident and hedging exposures more actively.
We offer the only screen for copper options on an international exchange. We remain the venue of choice for investors and funds to gain exposure to copper, as this liquidity and flexibility help market participants navigate both short‑term price swings and long‑term risk effectively.
Image 4: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
Image 5: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
Platinum options: Steady as it goes
Platinum (PO) options began the new year on a familiarly strong footing, with month‑to‑date activity reaching 1.4 K contracts, closely matching volume in the same period last year. A persistent supply deficit and a tighter physical market, together with the increasing role that platinum plays in China’s industrial strategy, have rallied underlying prices to above $2,700/oz, the highest ever on record. The last time platinum broached the $2,000/oz level was back in February 2008.
While volumes have moderated from the higher levels seen in mid‑2025, particularly the record set back in June, January 2026 still places the month in the top third of monthly volumes over the last 18 months, reflecting ongoing institutional interest.
Image 6: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
Image 7: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
Safe haven rush on silver
Building on the momentum in 2025, silver (SO) options also started the year strong, with monthly ADV tracking around 18 K contracts and weekly options maintaining a consistent pace at 4 K contracts. This solid volume reflects continued interest across both tenors, particularly amidst significant movement in the underlying market. While spot silver reached a record high in January, prices subsequently reversed, triggering a 26 % decline last week—the largest one‑day drop on record—before easing further. The consistent use of weekly options underscores their growing structural role in managing short‑term price fluctuations.
Image 8: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
Image 9: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
Weekly options: Appetite for mid‑week expiries grow
Trading activity in gold, silver and copper weekly options remained resilient in January 2026, carrying forward the strong momentum from late 2025, with an ADV just shy of 35 K contracts. While Friday expiries remain the liquidity anchor, traders are increasing their use of Monday‑through‑Thursday listings to manage week‑over‑week risk with greater precision. This trend underscores the evolution of weekly options into a daily tactical tool, allowing market participants to actively navigate news‑driven volatility from macroeconomic events and shifting global dynamics.
Since their introduction in 2014, our suite of metals weekly options for gold, silver and copper has allowed traders to gain exposure and manage price risk more precisely every day of the trading week.
Image 10: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
Image 11: Figure 1 – Gold Options (Monthly and Weekly)
Source: CME Group
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