The so-called gold VIX has been relatively calm despite the recent drop in gold prices, suggesting fear hasn’t crept into the market in a big way, according to a report Friday.
The CBOE Gold Volatility Index (GVZ) fell 4.7% on Thursday as gold prices firmed following a steep decline. Gold ETFs were poised for a higher open Friday as the metal regained $1,600 an ounce before the opening bell.
The gold volatility index, which is calculated by the Chicago Board Options Exchange, is based on SPDR Gold Shares (NYSEArca: GLD) options.
The index “remains far lower than in August or September, when gold peaked and then tumbled,” Reuters reported.