The price action for the oil and gold markets, along with their respective volatility indexes is inerrable when the state of the world is taken into consideration. Even a looming shooting war between Russia and Ukraine doesn’t do much for the price of oil, gold, or implied volatility of either markets.
Friday things started to get a bit interesting, but died off as the afternoon approached. Note that GVZ tried to reach for higher levels on the week, but just couldn’t hold on.
The price of oil seems to have no geopolitical concerns at all. I have a hard time buying the thought that Oil is down due to a slow economy, the numbers just don’t show that.
Looking at the curves, GVZ seems to believe that price action will continue to be relatively dormant which the bump in the September and October OVX futures relative to the index make me wonder if some traders are bracing for a price shock (could be higher or lower) in the next couple of months.