The price of gold rose last week and the SPDR Gold ETF (GLD – 161.97) was up over 3%. The result was high implied volatility in GLD options as well. GVZ rose over 14% based on gold prices starting to move around after a few weeks of dormant price activity. The futures curve flattened out some as these contracts did not rise nearly as much as the spot index. September futures were up 3.25% while farther out on the curve November futures were actually a tick lower on the week.
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The price of oil was higher last week and hit levels not seen since the beginning of summer before backing off a bit. The United States Oil ETF (USO – 35.68) did the same before closing down 0.7% on the week. Based on this price movement and the continued uncertainty coming out of the Middle East there was a rise in OVX for the week. Even though there was a rise in OVX the were was very little price reaction from OVX futures as those contracts have been projecting an increase in the spot OVX going into September, October, and November.