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Tag Archives: Futures contract

Using Gold To Hedge Korea Nuclear War Risk? This Is How To Do It, According To Goldman

In a note on the role of gold as a "geopolitical hedge of last resort", Goldman chief commodities strategist, Jeff Currie, writes that while it is tempting to blame the rally in gold prices on recent events in North Korea - which have certainly helped create a bid in gold - they only explain a fraction, or ~$15/oz of the more than $100/oz rally since mid-July. Instead, Goldman finds that the events in Washington over the past two months play a far larger role in the recent gold rally coupled...

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Precious Metals Flash-Crash After Silver Surged To 4-Month Highs, Gold Nears Election-Day Spike Highs

While stocks have been limping higher since around 2am ET (following headlines on an imminent ICBM launch) they remain lower from Friday's close: But precious metals the biggest gainers of post-North Korean "hydrogen bomb" testing safe haven flows. Silver broke above resistance at early June highs to test $18 and the highest levels since April 25th. But that was clearly not acceptable to someone: At 0451ET, someone decided it would be an opportune time to dump over a quarter...

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The Forking Paradise, Gold & Silver Report 3 Sep 2017

A month ago, we wrote about the bitcoin fork. We described the fork: Picture a bank, the old-fashioned kind. Call it Acme (sorry, we watched too much Coyote and Road Runner growing up). A group of disgruntled employees leave. They take a copy of the book of accounts. They set up a new bank across the street, Wile E Bank. To win customers, they say if you had an account at Acme Bank, you now have an account at Wile, with the same balance! This fork came about from a disagreement among...

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Gold Pops, Stocks Drop As Futures Open After Korean Chaos

In an echo of last week's move following North Korea's teating of missiles across Japan's territory, futures markets are opening in a decidedly risk-off mannwr following North Korea's "hydrogen bomb" test. Dow Futs down 100 points, Gold jumping and Treasury bonds bid...   All major US equity indices are down...   Gold is back above $1340...   USDJPY broke below 110.00   And VIX futures are spiking back into last week's Korea crisis...

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Spot Gold Spikes Above $1300 To Highest Since Election

While Dec gold futures broke above $1300 overnight (and are spiking above $1310)...   Spot Gold prices just broke above $1300 to the highest price since Trump's election...   Highest since the election...   Since Friday's close, before the worst of Harvey hit, gold is the best performing asset with bonds, dollar, and stocks slightly lower...

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WTI Drops After 3rd Weekly Build In Gasoline Inventories

Amid Libya headlines and contract rollover, WTI prices were wild heading into the inventory data tonight. Following two weeks of surprising builds in Gasoline inventories, API reports a surprise 3rd weekly build in gasoline inventories, and crude drawing only modestly (in line with expectations). The initial reaction was a kneejerk lower, breaking down the day's wedge.   API Crude -3.595mm (-3.5mm exp) Cushing -462k (+300k exp) Gasoline +1.402mm (-1mm exp) Distillates +2.048mm Last...

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The Single Biggest Bullish Catalyst For Oil

Authored by Nick Cunningham via OilPrice.com, One of the key objectives for OPEC is to bring down inventories, a goal that has been elusive this year. But if the oil futures curve is anything to go by, the oil market is showing signs of tightening. Brent futures have recently begun to exhibit a state of backwardation, which is when near-term oil futures trade at a premium to contracts dated further off into the future. This is the first time in years that backwardation has occurred, and...

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How To Hedge A Near-Term Market Shock: Here Are The Best Trades

As we showed earlier today, last Thursday's unexpected, historic VIX explosion, driven by a surge of geopolitical worries about North Korea, and subsequent collapse was remarkable in both how fast and furious it was both on the way up and then, on the way down.As Bank of America said "both the spike in vol and the speed of its retracement were almost unmatched." The move was also unprecedented in the sheer volume of VIX-related products - futures, options and ETFs - that participated in the...

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Two Stunning Facts About Last Week’s VIX Explosion

Last Thursday morning, just as the VIX was soaring on North Korea nuclear war fears in a historic move from single digits to ultimately peak just above 17 before retracing virtually all of the move in the coming days, we reminded readers that "As VIX Explodes, A Painful Warning: The Vega Of VIX ETFs Has Never Been Higher", referring to a recent observation by JPMorgan that the outstanding vega of VIX related ETF was a record high. This is how JPM described this observation previously: "in...

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One Trader’s Reality Check “If You Think Last Week Was A Disaster, You May Be In The Wrong Line Of Work”

While the moves in equity (VIX) and credit (CDX, ITRX) protection costs last week shocked many out of their recent coma of complacency, former fund manager Richard Breslow warns it was the lack of reaction across markets broadly that investors should be more worried about. Via Bloomberg, We really need to stop using the expressions “risk-on” and “risk-off.” Or if that’s too much to ask, how about a short holiday while we collect our wits. We grossly over use them to the point of rendering...

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