London gold futures market
The promise of unlimited stimulus by the U. These prices normally trade within a few dollars of one another. The higher New York price reflected the perceived cost of taking metal from London to deliver against Comex futures contracts in the United States, traders and bankers said. But if physical gold from London is needed to deliver against Comex futures contracts it has to be melted down from the ounce bars used in London and recast as ounce bars accepted by Comex.
Spread in gold market continues to baffle investors as futures prices eye higher levels
Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here! Kitco News The spread between spot gold and futures prices continue to puzzle investors despite some improvement on the logistical side of the issue.
Analysts highlighted major gold refineries and mining shutdowns as well as transportation limitations as some of the main reasons behind the unusual price spread. The futures-spot price differential points to a perceived higher cost of transporting gold from London to deliver against COMEX futures contracts in the U.
The futures basis typically trades within a few dollars of physical — a function of financing, shipping, insurance and storage costs — as plentiful physical metal in London could always be brought to smooth any significant disequilibrium conditions.
However, the whole system was broken as COVID logistical limitations disrupted everything from production to air travel. To deal with the physical squeeze, COMEX introduced a new gold futures contract with expanded delivery options that include troy ounce, troy ounce and 1-kilo gold bars. In the meantime, gold prices have been gaining ground and futures are benefiting as investors seek exposure to the yellow metal in the face of the looming economic uncertainty.
Gold-backed ETFs have also been seeing impressive demand. Important to keep in mind that the issue is not about the shortage of gold as there is plenty of physical metal out there. The problem is that oftentimes it is at the wrong location, according to analysts. This includes roughly , tonnes of jewelry and other products excluding coins , private sector investment of 42, tonnes and about 33, tonnes of official holdings.
And even as the logistical bottlenecks begin to ease, it will take some time to equalize the spot versus futures price spread, according to the bank. For Kitco News. Interactive Chart. Make Kitco Your Homepage. Kitco Gold Index. Search Stocks. About Kitco News. Search News. Mining Mining News. Kitco Gibson Capital. Metals Futures. Latest Press Releases. Mobile Apps Kitco Applications Our applications are powerful, easy-to-use and available on all devices.
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Real-time gold scrap value calculator for professionals iPhone Android Web. Calculate precious metal dimensions, weights and purity iPhone Blackberry Android. News Bites. Spread in gold market continues to baffle investors as futures prices eye higher levels. Anna Golubova Tuesday April 14, Kitco News Share this article:.
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London gold market is a market Over - The - Counter which means trading is done directly between the two parties involved, and not through a third party that. Globex Futures. Auto Refresh Is. Market data is delayed by at least 10 minutes. All market data contained within the CME Group website should be considered.
Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here! Kitco News The spread between spot gold and futures prices continue to puzzle investors despite some improvement on the logistical side of the issue. Analysts highlighted major gold refineries and mining shutdowns as well as transportation limitations as some of the main reasons behind the unusual price spread.
Learn about gold bullion coins and costs.
An unusually wide spread between gold prices for Comex futures and the London bullion market this week highlighted both pricing and delivery issues tied to the shutdowns of gold operations aimed at preventing the spread of the COVID pandemic. Metals traders were surprised to see Comex gold futures and London cash spot market prices so far apart on Tuesday. The latest data show that the U.
USD Gold Futures
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Gold futures prices soar over $100 on London spot confusion
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The London bullion market is a wholesale over-the-counter market for the trading of gold and silver. Most of the members are major international banks or bullion dealers and refiners.
Close 1, Because of its physical properties, it is resistant to air, moisture, heat and many solvents.
Gold suffers pricing issues as coronavirus shuts down supply sources
Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here! Trading has been wild Tuesday morning amid unconfirmed reports that London spot gold price quotes have become unreliable or have been pulled as U. Apparently, big gold traders and commercials in Europe who normally base their trading decisions on the London spot price rushed to buy Comex gold futures when they could not get London what they felt were accurate London spot gold prices. One long-time gold market watcher blamed the media for examining March Comex futures, which expire soon and have very little open interest and whose price would be extra volatile amid little liquidity. Importantly, as of this writing, there was no confirmation of this matter as traders try to sort the confusion out. Global stock markets were higher in overnight trading. However, the U. In overnight news, the U. The buzz in Washington, D.
