Gold resumed positive weekly performance with the SPDR Gold Shares ETF (GLD – 122.71) rising almost 1 ¾ percent (I miss trading in fractions). The result was a drop in GLD option volatility. GVZ was down 10.90% and the February GVZ futures lost 10.44%. The scare of the slow grinding uptrend that has been in place for a couple of weeks seems to have subsided. For a few weeks I have been showing the GLD weekly price change chart with an uptrend that has been in place as GLD consistently makes higher lows. However, GLD is not making those higher highs that technically minded traders like to see. Therefore I have added a resistance line just above recent highs. Resistance can always be broken and GVZ in the teens may be a signal that the line I drew on this chart may be short lived.
In the oil space, USO was higher and the Oil futures rallied last week as well. OVX dropped which is an indication of no real expectation of any price shocks (higher or lower).