For those just tuning in, the story so far…
Having noticed a sharp sell-off in the French banks in European afternoon trading, FT Alphaville compiled a post looking to understand the move. We noted a number of rumours which were circulating.
We also noted (since gold is increasingly being used as collateral) that there was a curious oddity in Wednesday’s GOFO chart for SocGen. Namely that the 12-month rate was below the 1-month rate… something which was relatively rare.
We stressed we didn’t know how significant that really was. But we published the chart.
(Nota bene: French banks were already off 10 per cent at that time as rumours swirled of a rating downgrade).
Imagine our surprise some time late when we discovered the 12 month Gold forward rate (GOFO) rate published by Reuters for Societe Generale was NOT below the one-month rate.
Had there been a data entry error! If so whose?
Or perhaps the quote was updated after our initial post.
In any case, Thomson Reuters is an authorised distributor of the London Bullion Market Association’s gold forward data, which — to us at least — suggests the data are as good as going to the source.
Related link:
Why is Socgen offering 12-month gold for less than spot? Or is it a typo? – FT Alphaville
