What a ride it has been for GCM0, the June-expiry Comex #gold contract. One month ago it
What a ride it has been for GCM0, the June-expiry Comex #gold contract.
One month ago it was trading at a $15/oz premium to the spot gold price.
Now it's trading at a $10/oz discount.
(short thread) https://t.co/X4Xy8kwOtO
This screenshot of the contract table shows that much of the aggregate open interest has been rolled into August, but there is still nearly 100k lots left (as of 26 May). https://t.co/zwXmis12j6
As we've said previously, very few longs on Comex stand for delivery, so most of these contracts will probably need to be rolled, and with the first notice day approaching (29 May), the June contract will likely under pressure for the next few days. https://t.co/3FYYeSgNtG
Here's a chart of the cost of rolling a Jun long into Aug. https://t.co/iMbXCyiF0x
I think this is another demonstration of just how badly the EFP blowout in March has affected the #gold market, especially the Comex futures market, although OTC liquidity has fallen too.
It also makes me wonder what all that gold that went to New York for? It looks like the longs are not standing for delivery after all.
(graph of Comex #gold stocks in millions of ounces). https://t.co/LbTrqwWusu
We will continue to monitor this situation and will tweet about it here and write about it on #Goldhub and its #blog.