Gold Forward Offered Rates (GOFO) or the cost to borrow gold remains negative.
The lack of liquidity in the interbank London Good Delivery gold market (400 ounce gold bars) has pushed gold forward rates, known as “gofo”, into negative territory, meaning that gold for future delivery is trading at a discount to physical market prices – a rare situation that has occurred only after the Lehman Brothers collapse and near
the bottom of the gold market in 1999.
The last time forwards were negative was in November 2008, when a scramble for physical
gold led a sharp price rally of 46% from $682/oz to over $1,000/oz between October 2008 and February 2009.