GOLDBUGS AMEX Goldbugs Index (GOLD)

[peel+green]

Following yesterday's move on the gold 6 month GOFO, ie going into Backwardation at the LBMA, it becomes interesting to look at the 12 month GOFO.

At the beginning of January the margin was +0.48, today it is +0.128 with a significant narrowing taking place over the last week.

When the 1 month GOFO went into Bacwardadtion on 8th July, the negative margin was 0.065. Yesterday's negative margin was 0.1216.

Stresses and strains abound on the supply side.