This Week in Gold and Oil Volatility – 5/4/2013

The price of gold continues to recoup losses that were incurred over just a couple of trading days last month.  For the SPDR Gold Shares ETF (GLD – 142.09) a key level to watch is 151.05.  This is the price where GLD closed on April 11th, the day before losing about 20 points over the next two trading sessions.   GVZ settled at 15.29 on April 11th and two trading days later closed at 34.48.  With the gold markets settling into a steady uptrend GVZ has tailed off a bit, but is still in the 20’s, but barely holding on to a level that starts with a crooked number.  The GVZ futures curve is signaling more upside for GLD as both May and June futures are in the high teens.

The oil volatility space was the only market that saw an increase in volatility.  The US Oil Fund (USO – 34.01) was higher on the week as was the implied volatility of USO options.  OVX climbed by 6.66% to close at 24.01.   24.01 may sound elevated for a volatility index, but OVX has been higher that all the other tradable volatility indexes for some time.  The average OVX close in 2013 is 22.90 so 24.01 is just a little above average.