Gold has long been considered a safe-haven asset, and its volatility can provide valuable insights for investors looking to capitalize on its upside potential. Recently, we’ve seen a notable increase in gold volatility, which could signal the start of a new upswing in the metal’s price. One metric that has caught our attention is the classical gold upside skew, which suggests that the metal’s upside momentum may be more pronounced than its downside movement.

To better understand this phenomenon, let’s take a closer look at the recent performance of the Gold Volatility Z-Score (GVZ). The GVZ is a measure of the implied volatility of gold options, and it has been steadily rising in recent months. This increase in volatility could be a sign that investors are becoming more confident in the metal’s upside potential, leading to higher premiums for gold options.

So, what does this mean for investors looking to play gold’s upside momentum? One attractive set up is the GVZ, which has popped higher but remains relatively low compared to historical levels. This suggests that there may be room for further gains in gold’s price, while still maintaining a relatively low risk profile compared to other assets. Additionally, the recent increase in gold volatility could also be a sign of improving market sentiment towards the metal, which could lead to increased demand and higher prices.

The recent upswing in gold volatility may signal the start of a new cycle of upside momentum for the metal. By paying close attention to metrics like the GVZ, investors can identify attractive setups to play this potential upside while managing risk effectively. Whether you’re a seasoned gold investor or just starting to explore the asset class, now may be an excellent time to consider adding gold to your portfolio.