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The gold premiums are highly contracted.
This could be the result of arbitrage hedging which we have discussed in the past. Essentially one could buy the futures and sell short PHYS and pocket any premium differential.
Traditionally it had been a sign of a lack of 'exuberance' in the specs over the future price moves.
The premiums tended to expand during speculative public buying AND short squeezes in the unit trusts.
...since February of 2008.
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Selling in the London and NY paper markets is being met by determined buying. Today was another record high close as the bear raid was 'stuffed.'
The equity markets are being managed higher on thin volumes led by the SP 500 futures.
As a reminder Monday 11 October 2010 is Columbus Day in the US and the bond markets and banks will be closed, although the stock market will be open. It is not a settlement day for stocks however.
It is also Thanksgiving Day in Canada, and the equity markets and other financial markets will be closed. This may lead to thin trading in some of the mining and oil stocks.
