via Kitco - Gold Lease Rate

One thing lease rates are telling you is that bullion leases are not available, from the simple fact that lease rates have turned positive. This is a key indicator for support in gold prices.

The three month treasury bill rate is hovering just above the lease rate and will go below it on a market sell-off. Lease rates in gold are adjusting correctly to declines in the gold price, but have remained positive since the April sell-off.

The monthly close in the gold price will more or less be determined on healthy demand and lease rates presumably being positive over the three-month treasury bill rate.

Silver prices aught to be supported as well, but the surprise should come in the advance of gold/silver ratio overall.

http://www.kitco.com/market/LFrate.html

-F6