• 3 minutes THE GREAT OIL PRICE PREDICTION CHALLENGE OF 2018
  • 7 minutes Big Oil Costs Can't Go Much Lower
  • 14 minutes The moves toward 'zero-manning' in oil & gas
  • 13 hours Jan's Electric bike replaces electric cars
  • 16 hours Funding Secured: Saudi Wealth Fund to Invest $1 Billion in Tesla's RIval Lucid to build its EV factory
  • 1 hour Global Hunger Continues to Grow Driven By Climate Change
  • 42 mins Is your name Philip? No? Too bad!
  • 9 hours Famous Musk's Tweet Puts Tesla Under Criminal Investigation
  • 3 hours Blackouts in Australia
  • 18 hours 100% Renewables will Fuel the Growth of Poverty and Homelessness
  • 22 hours Audi Launches E-Tron Electric SUV With $74,800 Starting Price
  • 2 days gas lines set 70 houses on fire simultaneously in Massachusetts, live now.
  • 1 day Bezos Rips Trump For ‘Dangerous’ Attacks on The Media
  • 12 hours Making Safe Nuclear Power from Thorium
  • 1 day Senate cancels postal service hearing
  • 2 days Tesla Will Fix Its Cars In-House
Alt Text

Expect Mine Closures In This Key Gold Mining Nation

Major gold mining nation South…

Alt Text

Did These Mining Giants Just Confirm The Next Gold Frontier?

After Ecuador’s President removed a…

Alt Text

Can Mali Maintain Its Gold Mining Status?

Mali could be about to…

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




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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