RE:Gold highly Volitile today High 1180.4 > Low 1160.10
Let’s see how volatile gold is. There are volatility stats that I occasionally look at.
We all know the SP500 VIX. I’m no expert on this. The SP500 VIX measures the implied volatility for the next 30 days based on SP 500 futures options trading. The VIX is now at 14.5% for the SP500 (annualized). The monthly rate is not based on 12 but on 3.5. There is a mathematical reason for this. The 30 day volitily for the SP 500 is 14.5/3.5 = 4.1%
Basically the SP500 could go up or down by 4.1% over next 30 days
SP500 VIX 14.5 4.2%
Gold VIX 15.5 4.4%
Gold miners VIX 51.0 14.5% (wow)
Oil Vix 41 11.7%
We could reasonably that the gold miners VIX can go up or down 14.5% over the next 30 days. We have seen these type of swings in AR many times.
Also the gold miners volatility is about 3.5 times more than gold.