What is Gamma Exposure (GEX) in Gold Trading?

1. Dealer Delta & Gamma Hedging

When retail and institutional traders buy options on CME Gold (GC), option dealers sit on the opposite side of the trade. To manage their risk, dealers dynamically hedge their exposure in the spot XAUUSD and GC futures markets (read our full Black-Scholes GEX methodology):

• Positive Gamma (Long Gamma): Dealers buy when price falls and sell when price rises. In the model this tends to damp moves and keep price between the call and put walls.
• Negative Gamma (Short Gamma): In the model, dealers sell into falling prices and buy into rising prices, which can amplify moves instead of damping them.

2. Call Walls, Put Walls, & Gamma Flip

Once per CME trading day, AurumGamma computes three levels from the settled CME gold options chain. They describe positioning in a model; they do not guarantee how price reacts:

1. Mega Call Wall: The strike above price with the largest call gamma concentration. The model reads it as a possible resistance area.
2. Mega Put Wall: The strike below price with the largest put gamma concentration. The model reads it as a possible support area.
3. Gamma Flip Zone: The modelled price where net dealer gamma changes sign, separating the damping regime from the amplifying one.

For the small same-day layer next to these levels, read What are 0DTE gold options levels?