Gold bulls are not afraid of the historic pullback, adding to their bets on gold with long-term call options.

Some staunch gold bulls are not concerned about the historic pullback in precious metals and still expect gold prices to soar to unprecedented levels. At the end of January, the price of New York gold futures briefly surpassed the historic high of $5,600 per ounce, only to experience an unprecedented plunge the next day. During this time, one or several investors began buying call spread contracts with expiration in December and exercise prices of $15,000/$20,000 on the New York Mercantile Exchange under the Chicago Commodity Exchange. Even after gold prices stabilized around $5,000, the position continued to accumulate, currently reaching approximately 11,000 contracts. "After a technical pullback, it is surprising to see so many deep out-of-the-money call spread contracts still open," said Akash Doshi, Global Gold and Metals Strategy Director at Dufu Investment Management. "Some traders may see it as a cheap lottery opportunity."