We analyze the effect of a highly dispersive element placed inside a modulated optical cavity on the frequency and amplitude of the output modulation to determine the conditions for enhanced gyroscopic sensitivities. The element is treated as both a phase and amplitude filter, and the time-dependence of the cavity field is considered. Both atomic gases (two-level and multi-level) and optical resonators (single and coupled) are considered and compared as dispersive elements. We find that it is possible to simultaneously enhance the gyro scale factor sensitivity and suppress the dead band by using an element with anomalous dispersion that has greater loss at the carrier frequency than at the side-band frequencies, i.e., an element that simultaneously pushes and intensifies the perturbed cavity modes, e.g. a two-level absorber or an under-coupled optical resonator. The sensitivity enhancement is inversely proportional to the effective group index, becoming infinite at a group index of zero. However, the number of round trips required to reach a steady-state also becomes infinite when the group index is zero (or two). For even larger dispersions a steady-state cannot be achieved, and nonlinear dynamic effects such as bistability and periodic oscillations are predicted in the gyro response.