The concept
measures how much price varies over time. Gold can move 1–2% in a day during active periods.
Why it matters
Higher volatility means larger potential losses for the same .
How markets interpret it
Traders often measure volatility using average true range (ATR) or standard deviation.
How it may relate to gold
Gold volatility often rises around Fed decisions, releases, and geopolitical events.
Key takeaways
- Volatility = how much price varies.
- More volatility requires smaller positions for the same risk.
Knowledge check
If volatility doubles and position size stays the same, risk…
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