Group 1 - Gold prices surged to a historical high, with international spot gold briefly surpassing $3,500 per ounce, marking a daily increase of over 2% and a year-to-date rise of more than $870 [1][2] - The Shanghai Gold Exchange's options market experienced extreme volatility, with several deep out-of-the-money call options seeing price increases ranging from nearly 98 times to 10 times [1][2] - The "Doomsday Wheel" effect in the options market was exacerbated by the approaching expiration of contracts, leading to significant price fluctuations in deep out-of-the-money options [2][3] Group 2 - Analysts noted that the recent uncertainty in the market, particularly regarding the independence of the Federal Reserve, has led to increased demand for gold as a hedge against inflation [2] - In the first quarter of this year, gold ETFs attracted at least $19 billion in inflows, indicating a strong interest from investors in the gold market [2] - The volatility in the options market is closely related to the "Doomsday Wheel" effect, where deep out-of-the-money options can experience extreme price changes due to their low premium costs and high leverage characteristics [3][4] Group 3 - The low premium of deep out-of-the-money options makes them attractive to investors looking for high returns, but the probability of success in such trades is low, leading to significant risks [3][4] - The implied volatility of gold options is currently at a historically high level, indicating strong market expectations for future price fluctuations, but this high volatility is not sustainable [4] - Liquidity risks are present in the market for deep out-of-the-money options, as these contracts often lack intrinsic value and may not trade frequently, making it difficult for investors to exit positions at reasonable prices [4]