While it's not here yet, the new Gold ETF is about to be launched. It is expected to have good liquidity and traded options. In the meantime, in addition to what's been mentioned, NEM is a reasonably good proxy.
=================== Like the Sheldon Natenberg option strategy for moderately bullish, buy underlying. NEM ; pays dividends, no time decay. === Searching for wisdom like a prospector pans for gold- Solomon, trader king
Visited the "NYMEX 3 days ago, alot of AMEX traders migrated there as such it is a very competitive pit so as an off floor trader, if you can open an account that gives you floor flash fills, you should do ok in terms of putting on spreads that conincide with your outlook on the metal. Open interst on the optons north of 500000 contracts I heard which is huge, pretty liquid.Just get over the fact that you can't see bid/offer in your screen so floor broker is needed.No big deal!
I have found the answer to my original question: buy CMX gold options. I am surprised that so many members & no one trading this option. At least no one posts. Gold trading is important these days in my opinion.