Gold volatility slumped to a 44- month low before the Federal Reserve concludes a two-day policy meeting.
After two months of treading water, gold prices are starting to sink.
The prospect of unprecedented European stimulus that sent gold prices to the biggest gain in three weeks still wasn’t enough to rescue bullion from the doldrums of sinking volatility.
Investors are too busy pushing stock prices to all-time highs to bother with gold, sending bullion’s price fluctuations to the lowest in almost 14 months.
Investors are shunning gold again, sending holdings in the world’s largest exchange-traded product backed by bullion to the lowest since December 2008.
Coffee traders should sell “grossly overpriced” options on New York futures to take advantage of a recent rally, said James Cordier , a portfolio manager at OptionSellers.com in Tampa, Florida.
"While gold has been reacting to the headlines, not many people are convinced that the gains will stick."
- James Cordier on Aug 15, 2014