For the first month of 2013 the price of Gold has been pretty steady and GLD has been in a range between 158.00 and 164.00. This lack of realized volatility, which has been persistent in this market for the past few months, continues to put pressure on GVZ. GLD finished the week at 161.45, basically in the middle of the range for 2013 and up 0.50% on the week. GVZ lost over 5% settling the week at 13.32. What I find interesting is the action on the far end of the curve. The April futures were unchanged and May actually rose a little. Maybe a break in gold (either higher or lower) is anticipated this spring.
Oil worked higher last week and pushed USO up 1.70%. The price of Oil has been mirroring what has been going on in the equity market and pushing higher on a consistent basis this year. The implied volatility of options on USO has been pushing lower with this grind higher. The futures are indication this trend is going to continue the curve had a parallel shift lower.