Monday, January 2, 2012

Gold lease rate turns positive

The gold lease rate (which Ed Grebeck of Tempus Advisors called the "real interest rate") has turned positive at year end. It's an indication of increased demand for shorting gold forward, likely driven by hedging activity at year-end. It will be interesting to see how gold forwards trade this week and if more shorting activity is in store for the metal.

3-month gold lease rate (Bloomberg)
SoberLook.com