1-3 mo. lease rates continue their drop well into negative territory. This is primarily from a rise in short term Gold Swap Rates(GOFO) - a bearish sign - although we have had this condition, and watched it worsen for some time, as the metal has incessantly moved up towards the key 1000-1030 level. Seems there's not a lot of interest selling uncovered into the market (or a big interest out there from large hordes to push this position on people) and a growing consensus in the future strength of the metal. This coupled with a blow up in OI recently and an oversold dollar could spell trouble. Or we could be seeing THE massive breakout which will run right through all contrarian signals. Guess we'll have to wait and see.
