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What is a gold curve?

Gold futures curves Investors access many commodity markets via futures contracts. … When the futures curve is upward sloping (futures prices are higher than spot), which is typical for gold, it is said to be in contango, which generally reflects the cost of carry.

What is a gold forward?

The Gold Forward Offered Rate (GOFO) is the swap rate for a gold-to-U.S. dollar exchange. It is not the price to lease gold but rather the price to swap gold for U.S. dollars. In other words, it is a rate at which someone is ready to exchange gold for the greenback.

Is gold in contango or backwardation?

Indeed, gold spends most of the time in contango, as it's reflected by the positive gold offered forward rate. The opposite of contango is backwardation, which is much rarer in the gold market.

Is gold always in contango?

Generally speaking, contango is a normal situation for durable and easily storable commodities which have a cost of carry, such as gold. This is due to the carry costs – higher futures price is a way of paying for these costs. Indeed, gold spends most of the time in contango.

Is gold a good investment in 2021?

The Price of Gold in 2021 Usually investors tend to allocate toward inflation-protection assets during an economic period where the prices of goods and services are rising, like now. That said, demand for gold has weakened. … Even though the price appears to be lagging, it is historically high.

Will gold price go down in 2021?

In the first month of 2021, gold prices averaged $1,866.98/oz, 0.46 percent up from December. The World Bank predicts the price of gold to decrease to $1,740/oz in 2021 from an average of $1,775/oz in 2020. In the next 10 years, the gold price is expected to decrease to $1,400/oz by 2030.

What is the gold future price?

Futures Overview