Gold has fallen about 10 percent from its peak above $1,000 an ounce in March, but a number of market participants seem to think the yellow metal’s bullish days are not yet over. Lind Plus Senior Market Strategist Phil Streible notes that open interest in gold call spreads has been building, and there has been strong buying seen in 1000/1050 and 1000/1200 bull call spreads. The December 1000 options show 15,864 contracts in open interest (outstanding positions) while the 1050 strike shows 12,678 and the 1200 strike shows 29,932 contracts. “Keep an eye on that spread,” he says. There may be reason to remain bullish as the U.S. dollar hasn’t been able to sustain lasting gains, and gold remains appealing as an inflation hedge. See related Reuters article, “Gold Options Point to $1,200.”

December NYMEX gold futures were last trading near $935.20, while October was trading at $930.10 and August $925.20.