Gold contango steepening

[taojaxx]

Jun-Aug $12.50 Aug-Oct now $7.00
Any reasons?
TIA

 

[globalarbtrader]

Jun-Aug $12.50 Aug-Oct now $7.00
Any reasons?
TIA

Perhaps related to the batshit crazy action in gold leasing rates

https://www.kitco.com/lease.chart.html

GAT

 

[KISS]

there is no contango in gold. why should there be
forward contracts for gold is mostly for golders miners hedging gold production and locking in profits for speculators who cares about forward contracts.

 

[taojaxx]

Perhaps related to the batshit crazy action in gold leasing rates

https://www.kitco.com/lease.chart.html

GAT

Yup, other side of the same coin. Not sure what's causing it.
Maybe some central bank (Turkey? Iran?) needs $$$ and swaps out their gold but few are short gold right now so no borrowers, therefore leasing rates turn deep negative. 2 month -1.83% explains the $12.50 August contango.
No idea, just me making sh!t up lol, but that could be something like that.

 

[taojaxx]

there is no contango in gold. why should there be
forward contracts for gold is mostly for golders miners hedging gold production and locking in profits for speculators who cares about forward contracts.

"there is no contango in gold."
????

 

[systematictrader]

there is no contango in gold. why should there be
forward contracts for gold is mostly for golders miners hedging gold production and locking in profits for speculators who cares about forward contracts.

Lol

 

[ballsofgold]

gold market is broken....

https://www.zerohedge.com/commoditi...-london-gold-price-spread-and-why-it-persists

 

[taojaxx]

Thanks, interesting article. I'm generally wary of ZeroHedge conspiracy theories but this is a plausible and solid explanation: Covid threw a wrench in the spot/forward arbitrage and it persists, hence that fat contango.