FAST FIVE: A Record Amount Of Physical Gold Was Just Delivered On COMEX, Here's Why
A Record Amount Of Physical Gold Was Just Delivered On COMEX, Here's Why Tyler Durden Sun, 08/02/2020 – 09:20 Traders on the main gold futures exchange in New York just issued the largest daily physical delivery notice on record.
Usually, delivery is “negligible.” What has changed.
Worth noting is that when a futures trader rolled its position into the next month, and his initial futures buying was translated into spot buying in London by an arbitrager, on a systemic level the arbitrager would roll its position as well.
The Global Gold Market After March 23, 2020 Since March 23 of this year, futures have persistently been trading above spot, though the spread isn't constant.
In the chart below you can see the spread between the “near month futures contract” and the “next near month futures contract.” This spread has also blown out on March 23.