• 3 minutes Top 3 Skills for Traders
  • 5 minutes Oil at $40
  • 8 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 3 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 35 mins Ecoside
  • 21 hours Guaido and the Conoco Award
  • 22 hours Welcome To The Club: Apple In Talks With Potential Suppliers Of Sensors For Self-Driving Cars
  • 13 hours Is Canada hosed?
  • 14 mins Countries with the most oil and where they're selling it
  • 24 mins The Number Increases: Swiss To Support Belt And Road Push During President's China Trip
  • 23 hours Opening up the waters off the coast of Florida to oil and gas drilling
  • 23 hours Trump Torpedos Oil Pipeline Haters
  • 1 day The Key Players In Libya's "Potential" Civil War
  • 1 day Tax Credits for Energy Storage
  • 1 day Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
Alt Text

This Key Gold Producer Sees Its Production Slump

Africa’s second gold producer Ghana…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Gold Futures Take Flight Over the proposed E.U. Bailout of Greece

The action in gold on Friday was notable.

Spot gold jumped over $5. And the rally has continued this morning, with gold now back above $1,110 for the first time in over a week.

The jump appears to have been driven by concerns over an proposed E.U. bailout of Greece, as well as political fears after the sinking of a South Korean ship near the border with North Korea.

Here's what's more interesting. Gold futures took flight on Friday. To a much greater degree than the spot price.

Gold Price 6 months out

Spreads on the front-month contract leaped from $0.60 to $13.30. And the trend continued across the futures board. The six-month future spread gained from $4 to $18.10.

Gold Price - second month out

The gold market is now significantly in contango. Investors are betting that the metal is going higher and higher over the coming months.

Interestingly, it was exactly such a futures structure that helped boost the oil market over the past year. In a contango, buying can beget buying as investors buy metal to store with expectation of selling it down the road at higher prices. The reason we saw record amounts of crude going into storage in the first half of 2009.

Might Friday's jump trigger a similar boost for gold?

By. Dave Forest of Notela Resources




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News