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Gold to find solace from negative lending rate
By Nicholas Larkin
Bloomberg News
Tuesday, November 11, 2014
Gold at a four-year low should find solace after rates at which bullion is lent for dollars turned negative, signaling tighter supply, Natixis SA said.
The Chart of the Day shows the three-month gold forward offered rate has turned negative on a weekly basis. Prices rose in three of the past four times this occurred since last year. There's now a "limited window" to bet on a gold rebound, Natixis economist Evariste Lefeuvre said in a Nov. 10 report.
A form of backwardation, when earlier prices are more expensive than for later dates, the negative GOFO rate signals that dealers are paid to lend metal against cash, rather than paying for the privilege. As bullion slid to the lowest since April 2010 this month on a stronger dollar and outlook for higher interest rates, demand for U.S. Mint coins increased. ...
... For the remainder of the report:
http://www.bloomberg.com/news/2014-11-12/gold-to-find-solace-from-negati...
Sinclair's Next Market Seminar Is Nov. 15 in San Francisco
Mining entrepreneur and gold advocate Jim Sinclair will hold his next market seminar from 10 a.m. to 3 p.m. on Saturday, November 15, at the Holiday Inn at San Francisco International Airport in South San Francisco, California. Admission will be $100. For more information and to register, please visit:
http://www.jsmineset.com/2014/10/10/san-francisco-qa-session-announced/
Join GATA here:
Mines and Money London
Business Design Centre
London, England, U.K.
Monday-Friday, December 1-5, 2014
http://www.minesandmoney.com/london/
Vancouver Resource Investment Conference
Vancouver Convention Centre West
1055 Canada Place, Vancouver, British Columbia, Cananda
Sunday-Monday, January 18-19,2015
http://cambridgehouse.com/event/33/vancouver-resource-investment-confere...
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