GOFO Rates Vs. Gold Price

Koos Janssen points out that when GOFO rates turn negative, the gold price is pushed up due to tight supply in gold.

I have compiled the 3 month GOFO rate since 2008, calculated from lease rates and libor rates. You will notice that the GOFO rate is quickly turning negative and this tells me that the gold price is probably nearing a bottom rather than a top.