This Week in Gold and Oil Volatility

The price of gold rose last week and the SPDR Gold ETF (GLD – 164.22) was up about 1.3% and GVZ rose as well climbing about 6%. In the GVZ area, the index was the only thing that was higher. September, October, and November futures all lost value. The result is an interesting curve shift as seen below. The futures markets had been anticipating a jump in GVZ, but maybe were a bit disappointed at the magnitude of what they got. For whatever the reason, all GVZ futures lost value last week even though the index was higher. 

Isaac is a distant memory for everyone except the hundreds of thousands of people without power on the gulf coast. The United States Oil ETF (USO – 35.89) was up slightly on the week and option volatility dropped a bit and the OVX was down about 2%. With the scare of the first hurricane of the season past OVX is lower and the September and October futures dropped as well. A week ago, November was only slightly higher than October, but is now at more of a premium based on October futures dropping and November rising over the past week.

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