Gold ETF Volatility Soars as Dollar, Oil Tame Inflation: Options
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The surging dollar and plummeting oil prices are posing a threat to gold’s recent rebound from a four-year low.
Options that protect against declines in a popular fund tracking gold have risen in price to the highest level in 15 months compared with a similar gauge for U.S. equities, according to data compiled by Bloomberg. The Chicago Board Options Exchange Gold ETF Volatility Index, which tracks derivatives prices on the SPDR Gold Shares exchange-traded fund, climbed 19 percent last week to 25.17, the highest in more than a year.