My interpretation is that the guy who wrote the article has not...

My interpretation is that the guy who wrote the article has not got the lease rate thing completely right.

Anyway, gold is not in backwardation nor was there the suggestion. For gold to go into backwardation GOFO has to go negative not the lease rates.

Anyway, interesting that he picked it up to.

The spike came from a jump in LIBOR or a double count of GOFO. I still cannot verify what happened there - data is delayed by 7 days.

If the spike was genuine then we must wait for further volatility before reading too much into it. But I was quite surprised and alarmed none the less.

Its interesting how it coincided with the start of this correction!

GC