Gold prices on a losing streak

This could be a good sign for the global economy, as it implies that volatility is thought to be decreasing. The demand for gold as a safe store of value is declining. Of course, it's not just the US that its own volatility measure for markets now. As London gets its own measure, the IVI, perhaps we won't be using gold prices as a barometer. Michael Bow writes on the new 'fear factor' measure:

The Vix, conceived in the early 1990s, tracks America’s S&P 500 market but the launch of the FTSE version – to be called the Ivi – will let money managers gauge the fear in the London market on a nightly basis.

“The idea of the fear factor has always been based on the US market and that isn’t always the same view as the UK. Here we have the UK fear factor,” FTSE Group chief executive Mark Makepeace told City A.M.

These type of indices are often referred to as a “fear” index because they are based on the expected volatility of prices in the future.

(Full article)