Last Week in Gold and Oil Volatility – September 22, 2013

The Fed’s announcement (non-announcement?) on Wednesday impacted all the financial markets.  Gold was a market that also reacted very positively to the continued boost to economic activity that is quantitative easing.  The SPDR Gold Shares ETF (GLD – 127.96) rose 4.4% on Wednesday which was the biggest one day gain since January 2009 and the sixth biggest upside move in the history of the fund.  Looking at the week over week performance of GLD one would never know there had been such a strong day since the net result for the week was a small gain of 0.14.  GVZ, on the other hand showed that something happened, but the ‘something’ was more of a feeling that there should be little concern over lower gold prices in the near term since the Fed is going to keep the world afloat.

The oil market drifted lower with the United States Oil Fund (USO – 37.77) losing a bit on the week and volatility came in as well.  OVX dropped about 8% and the curve moved in a fashion that resulted in a text book contango shape for the first time in a while.

GVZ and OVX

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