The Chicago Board Options Exchange [CBOE] launched a new index to track volatility in the gold markets Friday. The CBOE Gold Volatility Index (.GVZ) tracks the 30-day volatility of SPDR Gold Trust (GLD) options. The benchmark is similar to the widely watched CBOE Volatility Index (.VIX), but is not yet tradable. Instead, GVZ offers a gauge of expected volatility for the precious metal, which, after hitting record highs of $1,030.80 earlier in the year, is trading around $910 an ounce. The launch of the new index comes just two weeks after the CBOE announced volume records in GLD options.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.