We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Real Time News
  • RT @IGSquawk: We're currently pricing #GBPUSD at 1.2852 and #FTSE at 7129.2 That's a drop of 1.18% from Fridays close for GBPUSD and 0.22%…
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/K6W9X4v8XD
  • The $NZD may be carving out a near-term bottom against its US counterpart but scope for gains seems limited within a broader downtrend. Get your technical analysis from @IlyaSpivak here: https://t.co/7bsVuSyWMn https://t.co/DsmNYKk8v3
  • Can you trade with the joy of missing out (#JOMO)? Find out how you can turn your #FOMOintrading to JOMO here: https://t.co/G5H26NXZQe https://t.co/pVdKUPzvmk
  • RT @PaulBrandITV: It’s likely that this will end up in court on Monday. The case in the Scottish courts may well consider that this doesn’t…
  • RT @PaulBrandITV: BREAKING: Tonight the PM has sent this letter to EU requesting an extension to Brexit. Wording is copied and pasted from…
  • RT @FactSet: $SPX is reporting a (Y/Y) decline in earnings of -4.7% for Q3 2019, which would mark the 3rd straight quarter of (Y/Y) earning…
  • RT @MehreenKhn: 🔔🔔 Here is the letter Boris Johnson has sent to Brussels tonight saying an extension would "damage" interests of the EU and…
  • What is #forex time frames and how can it be applied to multi-time frame analysis. Find out here: https://t.co/uEmAGW4ckP https://t.co/f4RrjSQK8y
  • Thread on #Brexit latest ⬇️ https://t.co/Sbgh6614Mc
Gold Price Eyes Fed, but Gold Volatility (GVZ) Hints at Upside

Gold Price Eyes Fed, but Gold Volatility (GVZ) Hints at Upside

2019-07-30 20:04:00
Rich Dvorak, Junior Analyst
Share:

GOLD PRICE, GOLD VOLATILITY, JULY FED MEETING – SUMMARY POINTS

Gold prices have soared well over 12% so far this year driven largely by safe-haven demand and plummeting interest rates amid trade war fears and slowing GDP growth. While gold traders will likely turn to the July Fed meeting for clues on where spot prices will head next, gold price volatility could be suggesting that the precious metal will continue its ascent.

SPOT GOLD (XAUUSD) AND GOLD PRICE VOLATILITY (GVZ) CHART: DAILY TIME FRAME (NOVEMBER 20, 2018 TO JULY 30, 2019)

Spot Gold Price Chart and Gold Volatility

Gold price volatility – also referred to by its ticker symbol “GVZ” – is a measure of market’s expected 30-day price movement in the SPDR Gold ETF (ticker symbol GLD). Unlike most asset classes, spot gold prices typically benefit from rising volatility. This mostly-positive relationship between spot gold and gold price volatility is depicted in the chart above.

GOLD PRICE VOLATILITY (GVZ) AND VIX INDEX PRICE CHART: DAILY TIME FRAME (NOVEMBER 20, 2018 TO JULY 30, 2019)

Gold Price Volatility GVZ and VIX Index Chart

Also, further gold price volatility is suggested by the recent rise in the VIX Index – Cboe’s 30-day implied volatility reading on the S&P 500 – due to their generally high degree of correlation. If the July Fed meeting disappoints markets with the central bank refusing to capitulate to the lofty rate cut expectations currently priced in, that could cause a jump in the VIX which would likely follow a selloff in risk assets. In turn, spot gold prices could catch a safe-haven bid. Accordingly, if volatility extends its climb following the July Fed meeting, measured via GVZ or VIX, it will likely bode well for spot gold prices.

-- Written by Rich Dvorak, Junior Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.