Bullet points:
- the futures-spot difference (basis) on gold reached never reached before levels;
- we have to adapt to this situation as long as it last, as values before the 23rd of March are not appliable in this moment;
- The data suggest that the basis increases when gold value goes up and decrease when it goes down: identifying the range for the difference value can help us identify the next move of the market.
Hello, despite what I believe and I traded few weeks ago (bought aput on gold), reality is that gold went up. The market is irrational on gold these days, but markets can stay irrational for more time you can stay solvent. So, even if I like to be reasonable, we have to follow the markets and data they provide, but always keeping in mind the contrarian scenario when conditions for it to occur are met.
What the data is telling us?
I compared the Gold future on gold and the difference between the future price and the spot price,called basis. Of course, this value increases when gold prices goes up as there is an anticipation of a higher expected future value, and decreases when it goes down. This is happening also now, but at unprecedented levels. There is a huge interest on gold, and we also reached a difference of 70 points and is now trading in a new range 10-60.
Keep an eye on it!
- the futures-spot difference (basis) on gold reached never reached before levels;
- we have to adapt to this situation as long as it last, as values before the 23rd of March are not appliable in this moment;
- The data suggest that the basis increases when gold value goes up and decrease when it goes down: identifying the range for the difference value can help us identify the next move of the market.
Hello, despite what I believe and I traded few weeks ago (bought aput on gold), reality is that gold went up. The market is irrational on gold these days, but markets can stay irrational for more time you can stay solvent. So, even if I like to be reasonable, we have to follow the markets and data they provide, but always keeping in mind the contrarian scenario when conditions for it to occur are met.
What the data is telling us?
I compared the Gold future on gold and the difference between the future price and the spot price,called basis. Of course, this value increases when gold prices goes up as there is an anticipation of a higher expected future value, and decreases when it goes down. This is happening also now, but at unprecedented levels. There is a huge interest on gold, and we also reached a difference of 70 points and is now trading in a new range 10-60.
Keep an eye on it!
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Or simply you don't want to risk it?
Trade forex, oil, crypto, indices, and keep 80% of the profits you make, while losses are covered!
Check it out now → ftmo.com/en/?affiliates=2427
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Are you a good trader but you lack the capital?
Or simply you don't want to risk it?
Trade forex, oil, crypto, indices, and keep 80% of the profits you make, while losses are covered!
Check it out now → ftmo.com/en/?affiliates=2427
Or simply you don't want to risk it?
Trade forex, oil, crypto, indices, and keep 80% of the profits you make, while losses are covered!
Check it out now → ftmo.com/en/?affiliates=2427
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.