Maybe the markets are becoming use to sudden moves in the price of gold. On Thursday the SPDR Gold Shares ETF (GLD – 127.82) dropped just over 3%. This was the biggest one day drop since June. The drop was met with the same sort of attention that you give the nephew that you know is going to misbehave at the next family reunion. You shrug and go back to whatever it was you were talking about to get through the day. The table below shows the five worst days for GLD this year and what GVZ did on the same days. Although it is fading in memory that almost 9% drop in GLD resulted in a 61% rise in GVZ. The gain on Thursday in GVZ was pretty tame relative to the other days that made this ‘top 5’ list.
The oil market was under pressure as the Syrian situation seemed to cool. One smart guy that tweets about the markets said something to the effect that the Syrian situation is not done, but as far as the markets are concerned it is done. This lowering of the political risk premium in the price of oil can be seen in lower oil prices and definitely shows up in the 17.5% drop in OVX this past week. An additional market that agrees is the front month OVX futures which were down almost 12% as well.