by Jan Skoyles, TheRealAsset.co.uk
Confused by talk of gold backwardation, the gold lease rate, GOFO and what it all means for gold prices? Read Jan Skoyles’ explanation of it all to get the whole picture…
The term ‘backwardation’ has suddenly popped up in the mainstream financial media and is being touted as the signal that the price of gold is on its way back up.
What does backwardation even mean?
It means that the spot price rose above the nearest future contract.
Last Friday Reuters reported that ‘Gold went into backwardation in comparison to the three-month futures contract in early January,’
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