May 2026 Metals Options Report
Gold options volume held steady in May as prices lingered around $4,500 per ounce, while the 10‑year Treasury yield rose to 4.58%, dampening safe‑haven appeal. Copper options rebounded, with monthly ADV hitting 8,000 contracts, but traders watch a looming U.S. tariff review that could impose up to 30% duties by 2028. Silver activity surged, nearly doubling to 8.1K contracts as the metal steadied just above $76 per ounce, reflecting its dual industrial‑precious role. Across the board, weekly options remain a core tool for granular, day‑to‑day risk management, signaling a structural shift toward finer‑tuned hedging strategies.
The Growing Divide Between Equity Indices and Dividend Futures
Since early 2016 the S&P 500 has risen 275% while expected dividends have grown only 56% in net present value, exposing a widening gap between equity prices and dividend expectations. The divergence stems from higher discount rates that lower the NPV...
Backwardation in Oil: Fading Supply Concerns or Underpricing Risk?
CME Group released a video examining the recent backwardation in crude oil, questioning whether easing supply concerns are driving the shape of the curve or if market participants are underpricing risk. The discussion highlights tighter near‑term pricing versus longer‑dated contracts...
Fresh From the Trading Room: Certainly Uncertain
Inspirante Trading Solutions warns that WTI crude oil has rebounded above $107 and is eyeing the $110 threshold, a level that historically precedes equity market stress. Brent surged 7.6% to $119 after President Trump signaled a prolonged U.S. naval blockade...
April 2026 Metals Options Report
Gold options activity in April moderated, with monthly ADV falling to 42.5 K contracts and weekly ADV to 17.3 K, while spot gold stayed above $4,700/oz amid 10‑year Treasury yields near 4.32%. The market’s implied volatility remains elevated as investors weigh hawkish...
Commodities: Oil Takes the Reins From Gold
Oil has begun to outperform gold as the leading commodity on CME’s trading platforms, driven by stronger demand expectations and tighter supply outlooks. Recent price movements show crude futures gaining momentum while gold prices have softened amid easing inflation concerns....
Implications of WTI Oil Futures In Backwardation Amid the Supply Crunch
WTI oil futures have entered backwardation, with near‑term May and June contracts trading above the more stable December contract. Backwardation signals a tight market and generates a positive roll yield, contrasting with the negative roll yield seen in contango periods....
Seeking Safe Havens in a Risk-Averse Environment
CME Group released a video titled “Seeking Safe Havens in a Risk‑Averse Environment,” outlining how investors can use derivatives to protect capital amid heightened market volatility. The presentation stresses the growing demand for low‑correlation assets such as Treasury futures, gold...
Uncovering the Hidden Drivers of Commodities
CME Group’s economic research maps the long‑term drivers behind the Bloomberg Commodity Index (BCOM) and its six sectors. Historical analysis shows energy’s early‑2000s surge tied to China‑India demand and geopolitical shocks, while precious metals have led recent performance, with silver...
Q1 2026 Metals Update
Metals futures and options surged in early 2026, hitting a record single‑day volume of 4.2 million contracts on January 30, driven by rising gold and silver prices and a 100 % jump in battery‑metal activity. The launch of a 100‑Ounce Silver futures contract...
Fresh From the Trading Room: A Little Jittery
The past two weeks saw extreme swings in commodities, with gold tumbling 12% after a record near $5,600, silver down about 30% from its $120 peak, and natural gas plunging 26% on shifting demand forecasts. President Trump’s nomination of former...
January 2026 Metals Options Report
Gold options opened 2026 with record‑high activity, posting a month‑to‑date average daily volume of 73 K contracts for monthly tenors and 30 K for weekly. Spot gold surged past $5,000 per ounce, driven by a weaker dollar and heightened geopolitical tension, while...