How does it affect gold?
↑ Rule: When VIX rises → gold tends to rise
When the VIX rises, investors are scared. Scared investors sell stocks and buy safe things — and gold is one of the safest things they can buy.
When the VIX falls, investors feel confident. They move money back to stocks and sell gold.
Think of gold as the 'panic room' of investing. The VIX tells you how many people are heading for it.