GOFO is now positive, but LIBOR hasn't changed much, so the lease rates (LIBOR - GOFO) have gone down. That makes it less attractive to lease gold into the market (as I understand it).
During recent years, the CB's re-added 1200 tonnes to their stockpile, a substantial part coming from the outflow from ETF's. No gold to lease? And that negative GOFO has the same relevance to the gold price trend as the wings of a duck that paddles on the water. It's the relative that matters, not the absolute, as shown in my older post.
Still hitting records; Gold Shortage, Worst In 21st Century, Sends 1Y GOFO To Lowest Ever... And India Just Made It Worse ZH
GOFO rates went into negative territory on 27.10.14, and kept getting lower steadily, reaching -0.5825 on 01.12.14. The 02.12.14 data shows it just went up to -0.3825, gaining 0.2000 points. I'm not an expert in GOFO, does this look fishy? I've skimmed through the GOFO stats from recent months and haven't noticed such sharp changes. GOFO stats: https://www.quandl.com/OFDP/GOLD_3-LBMA-Gold-Forward-Offered-Rates-GOFO
Check my blog out for some recent articles on this. This negative GOFO is not historic once you take away the distortion of the US' zero interest rate policy.