This Week in Gold and Oil Volatility – 3/14/2014

Vladimir Putin has been accused of many things but I don’t think he’s ever been called a ‘gold bug’.  For those born after 1990 a gold bug is considered someone bullish on gold.  The SPDR Gold Shares ETF (133.10) closed above 130 for the first time since October.  Of course this prompted me to create a price chart.  It appears that if GLD can get over the mid-130’s there is not much in the way as far as resistance until the 150’s.

GLD Weeklys

Gold is often an asset looked to as a safe haven when there is uncertainty in the world and actions taken by Russia helped put the GLD to higher levels and also managed to push implied volatility of gold options higher.  GLD was up 3% and the CBOE Gold ETF Volatility Index (GVZ – 18.32) took notice rising 15.8%.  The March futures closed at a slight premium of 18.90 on Friday which I found interesting.  Due to the Good Friday holiday in April volatility derivative settlement is on the open Tuesday this month.  That means the March GVZ Future went out at a premium to the index with only one day left to trade.