Interpreting the Index (Typical Ranges)
This index uses gold price volatility (GVZ) as a proxy for market sentiment. High volatility indicates Fear, while low volatility suggests Greed or complacency.
- Extreme Fear (0-25): High anxiety in the market; investors may be seeking gold as a safe haven.
- Fear (25-45): Increased volatility and uncertainty.
- Neutral (45-55): Balanced volatility, stable market conditions.
- Greed (55-75): Low volatility, indicating confidence and a potential decrease in safe-haven demand.
- Extreme Greed (75-100): Very low volatility and high complacency in the market.