24.07.2013 - Futures-based ETF in focus as gold goes into backwardation
In gold ETFs, bullion-backed funds receive most of the attention and assets. However, an ETF that uses futures contracts for exposure to the precious metal is getting a second look as gold goes into backwardation. Backwardation occurs when the spot price is higher than the near future contract, and is a rare situation in gold. This market condition puts the focus on PowerShares DB Gold Fund, which stands to benefit from backwardation. Gold’s biggest backwardation since 1999 prompted a “corrective rally,” Bloomberg reports, citing Societe Generale analysts...............................................Full Article: Source
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