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What a steepening gold futures curve says about demand for the yellow metal
During the relief rally staged by markets after the U.S.-China trade deal, the price of gold faltered and now stands 5% below its peak set in the first week of May. Steepening futures contracts and central bank purchases, though, suggest that underlying demand is robust and this year's rally still has legs. As this chart from Correlation Economics illustrates, the gold futures (GC00) curve is steepening - a bullish indicator. Traders are betting prices will rise. Given the extent of the rally in risk assets with the S&P 500 SPX rebounding 15% from its April trough, a much larger correction in gold might have been ... (full story)
