Gold bugs are finally getting a bid.
Prices of continued to rally Thursday, rising more than 1 percent to a four-week high as uncertainty over a possible Fed rate hike had investors piling into the safe haven asset. The precious metal is now up more than 6 percent from the recent low hit in late July and some traders think now could be its time to shine.
On Wednesday, when options volume in the SPDR Gold ETF, the , ran 1 ½ times its daily average, one trader bet nearly $250,000 that the ETF could continue to rally over the next two weeks. Specifically, that trader bought nearly 12,000 of the Sept. 4 weekly 112-strike calls for 20 cents each. Since purchasing a call option allows a trader to buy a stock, or in this case ETF, at a certain price for a given time, this is a bullish bet that the GLD will rise above $112.20 by Friday, Sept. 4.