• 3 minutes The World Economic Forum (WEF) - Davos 2022 Conference held this last week of May
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 22 hours "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 4 days Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 11 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 22 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
One Junior Miner May Have Sparked A New Gold Rush In Canada 

One Junior Miner May Have Sparked A New Gold Rush In Canada 

An up-and-coming gold exploration company…

Is This The Most Exciting Gold Play Of The Year?

Is This The Most Exciting Gold Play Of The Year?

Canada is quickly becoming a…

Dave Forest

Dave Forest

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

More Info

Premium Content

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





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News