Despite missing a trading day due to the holiday shortened week, the SPDR Gold Shares (GLD – 134.15) traded in a range last week that was 0.01 shy of 5.00. This is an expansion of the range over the past two weeks. However, despite zigzagging around, GLD finished the week down fractionally and the CBOE Gold ETF Volatility Index (GVZ – 23.59) was down about 3.5%. GLD seems to have new support at around 130.00 and as long as GLD holds that GVZ will probably drift lower. Of course GVZ can spike when GLD moves higher or lower, but a slow grind higher would not take GVZ back to the 30’s like a break of support would.
The geo-political situation favors elevated volatility in the oil market and that’s what we got last week. The CBOE Crude Oil ETF Volatility Index (OVX – 28.10) was the single tradable volatility market that did not move lower last week. It didn’t move up either closing the week unchanged, but at an elevated level.