Last Week in Gold and Oil Volatility – August 18, 2013

Despite being informed that several high profile gold bulls reduced or eliminated their positions recently, the price of gold managed to break through some technical resistance this past week.  The SPDR Gold Shares ETF (GLD – 132.58) managed to climb over the 130 level.  The impact on implied volatility was interesting as GVZ was up almost 7% to 22.97.  GVZ will often react to a move higher or lower.  This is a bit different than equity index volatility changes.  It may be that the mind of the market has GVZ showing that there is uncertainty regarding GLD staying above this support level.

Despite the underlying market climbing, the CBOE Crude Oil Volatility Index (OVX – 23.99) was higher on the week.  OVX rose just under 6% with the United States Oil ETF (USO – 38.40) was up 2.5%.  The curve managed a fairly parallel shift indicating risk concerns for dramatic oil price changes higher or lower well into the fourth quarter.

OVX GVZ

The posts on this blog are opinions, not advice.
Please read our disclaimer for Indices.

Post a Comment

Thank you for submitting a comment. We ask you to use the comment guidelines to promote thoughtful and productive discussions. Your comment will be approved before it will be posted. Thank you for your patience.

Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

  • CATEGORIES

  • Recent Comments

  • Tags

  • authors

  •  

  • Quick Links

  • Blogroll

  • Follow Us

    RSSTwitterFacebookLinkedInYouTube
  • Archives