The SPDR Gold Shares (GLD – 126.86) ETF rose 0.50 on the week after giving a head fake that lower levels were on the horizon. There are gold bulls and gold bears – all of which are equally vocal these days – and neither can really claim victory this past week. The small weekly change along with a fairly narrow high low range for the week in GLD resulted in a drop in gold volatility. GVZ was off 11% to 21.50. Another week of quite like this and we may reach some post April lows in GVZ and return to the high teens.
Oil futures and the United States Oil (USO – 37.59) ETF were lower which pushed OVX slightly higher for the week. The futures did not follow at all with the August contract unchanged and the other three months lower across the board. The result is an interesting twist of the two curves on the diagram below.