From Alhambra Investment Partners:
After the overdone debt ceiling/gov’t shutdown passed, gold was “released” from its interbank strangle and forward rates returned negative out to 3 months. The shortage was again prominent and gold prices began to adjust accordingly. They didn’t get very far.
Since November 1, right around the time dollar conditions began to tighten noticeably again, forward rates have been rising in that now-familiar pattern. It appears as if we are setting up with a fourth incarnation (just this year) of the GOF- rise/Gold-prices-drop pattern.
To date, there are numerous factors driving the collateral problem that has plagued the system since the launch of QE 3 & 4. From mortgage bond collateral to international trade considerations, there is enough to hem gold prices into this maddening range....MORE
