All
Outcomes
Market
Price
AI Fair
Value
Value
Edge
$6,200
YesNo
$5,600
YesNo
$5,400
YesNo
$6,500
YesNo
$6,000
YesNo
$5,200
YesNo
$5,800
YesNo
$5,000
YesNo
$4,600
YesNo
$7,000
YesNo
$8,000
YesNo
$4,800
YesNo
AI Insights:
03.15 18:25 UpdatedFair Value Reasoning:
Current gold futures are oscillating in the $5,060-$5,125 range, correcting from highs due to hawkish Fed expectations and a stronger dollar. Given the high volatility (GVZ >30%), the distribution has fat tails. The $5,000 strike, being slightly below spot, should have a fair value just above 50%, yet the market prices it at 47.5%, indicating excessive bearish sentiment. Conversely, deep OTM options (e.g., $6,000+) are still carrying a premium due to the 'lottery effect' despite recent corrections. The $4,800 option is undervalued at 51%, as it lies well within one standard deviation of the current price.
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Hedging
US 10Y Yield
DXY
Gold
This market directly corresponds to the price movement of Gold futures, offering high direct hedging value (Score 4). Additionally, significant fluctuations in Gold prices are typically inversely correlated with the Dollar Index (DXY) and US Treasury Yields (US 10Y Yield), reflecting macro inflation expectations or risk-off sentiment.
Movers
Mar 13, 2026 - Mar 14, 2026, the $4,800 option price plunged from 69.5c to 51.0c (an 18.5c drop). The reason is a sell-off in gold futures triggered by a strengthening dollar and hawkish Fed signals amid inflation fears from the 'Iran war' oil shock. Confidence in gold holding the $4,800 support collapsed within 24 hours.
Feb 24, 2026 - Feb 25, 2026, the $8,000 option price surged from 3.5c to 21.85c due to a liquidity flash crash and irrational buying on thin order books.
Divergence
Significant divergence exists. Major investment banks (Goldman Sachs, UBS) have set target prices around $4,000 and $4,500 for mid-2026, significantly below the current spot price of ~$5,100. However, the prediction market assigns an 80% probability to gold staying above $4,600. This implies market participants are much more bullish on gold's support levels than institutional analysts, or that the bearish analyst reports have not yet been fully priced in.