Since this's horseshoes & Ur "close" I'll give U some pts just fer trying, JD.(grin)
The OTC market that your post referred to is in LONDON. It is the LDMA or the London Bullion Marketing Assoc. market, where actual boatloads of physical gold trade, under the auspices of the Rothschilds and other smaller, but darn sight bigger 'n you and me players.
These are options contracts on actual physical LBMA gold and not futures per se, as you surmised.
The reason why it is negatively affecting POG at this time and usually does at the end of each month btw,...
is that those who don't want to take or make delivery reverse themselves and step aside or roll their positions into another month.
POG has obviously rallied from 282 to 297 give or take a few shekels...
therefore, those that were long and don't want to take delivery of the physical sold and stepped aside.
OTC trades/traders are players in the PURE market
as opposed to us US Comex and/or CBOT futures plays, b/c we are the 1st son of Pure Gold Play, aka deriatives plays.
BTW, the volume on this LBMA OTC mkt is 10x the volume of our Comex
oh, and nice t'make your acquaintance.
O/49r |
