There is much talk of the “fiscal cliff”, and the implications regarding demand and production. Interestingly enough, this week has seen economic data suggesting increased demand. This has put pressure on GLD. It is also a market indicator that may mollify geopolitical concerns. At home, the fiscal cliff; abroad the recent violent disputes in the Middle East.
Subsequently the implied volatility of gold (GVZ) has fallen to all-time lows.
Oil (USO) and it’s implied volatility index (OVX) and futures have followed suit this week.