- This is the script of CNBC's news report for China's CCTV on February 15, Monday.
Welcome to CNBC Business Daily, I'm Qian Chen.
Gold fell for a second straight session on Monday after hitting its highest in a year last week, as fears over the global economy eased and stock markets rebounded.
Gold prices were well supported since the beginning of this year, as turmoil in global equities stoked safe-haven demand for the metal, along with the Japanese yen and U.S. Treasuries.
The yellow metal was also helped by growing expectations that the Federal Reserve would not be able to raise U.S. interest rates this year.
Hedge funds and money managers boosted bullish bets in COMEX gold futures and options in the week to Feb. 9 ahead of the bullion market's biggest daily rally in years, U.S. Commodity Futures Trading Commission data showed on Friday.
Assets of SPDR Gold Trust, the top gold-backed exchange-traded fund, fell
0.71 percent to 710.95 tonnes on Friday, but the fund had seen sharp inflows before that.
Traders, including billionaire investor Mark Cuban, are turning to the options market.
In the Thursday interview, Cuban clarified that his big gold bet was purely based on short-term psychology rather than a long-term investment.
"I think gold is more religion than fundamental. I don't see it as a hedge.
This is purely a trade," he said.
On CNBC's "Fast Money Halftime Report" on Thursday, Cuban said he has bought "a lot" of call options in gold in response to widespread confusion over tumultuous markets.
The gold ETF, GLD, traded at four times its average daily volume on Thursday, with call options outnumbering put options by 4-to-1.
One particularly bullish trader placed a big bet that GLD could surge 19 percent in the next month.
On Thursday, that trader bought 20,000 of the March 140-strike calls in GLD for 30 cents per 100-share contract. This is a $600,000 bet that GLD rises above $140.30 by March expiration.
Closely followed market watcher Dennis Gartman said Friday it's time to take a pause on gold.
To be sure, The Gartman Letter publisher believes buying gold is a smart move in the long term, but not in the coming days.
Gartman expects gold to slide back to $1,215 to $1,225 or so, at which point he said he might be a buyer.
Gold and other safe haven assets have gotten a boost as investors flee risk assets like stocks in the face of global growth concerns and spiraling crude oil prices.
CNBC's Qian Chen, reporting from Singapore.