Inflection Point for Gold

24 Mar, 2020
Category: Financials
Tags: Precious Metal

Thing has changed in this precious metal after FED's ZIRP move.

Gold futures has changed from a contango mode into a backwardation mode.

Backwardation is rare for gold and the previous time where is occurs is when the Fed announced the Zero Interest Rate Policy.

This may signal that there is an immense purchase of physical gold at this moment. 

* Backwardation is where the spot price is higher than the futures price. Contango is where the futures price is higher than the spot price.

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