Spot Gold Trading Volumes Plunged in April Amid Market Turmoil
Spot Gold Trading Volumes Plunged in April Amid Market Turmoil
(Bloomberg) --
Spot gold trading tumbled last month as the market was caught up in disruptions from the coronavirus that spurred a decades-high disconnect between prices in London and New York.
Trading volumes fell to 743.5 million ounces in April, down from 1.33 billion the previous month, according to the London Bullion Market Association’s LBMA-i. The service tracks trading by the association’s members in London and Zurich.
Logistical headaches, gold-price volatility and the jump in spreads between the key hubs of London and New York have made the market appear riskier, deterring some traders. HSBC Holdings Plc, one of the largest players, said in a recent filing that delivery disruptions and closures of gold refineries contributed to its unusual swings in trading profits in March.
Things are starting to return to normal in the gold market this month, as major refineries ramp up production. Spreads have also dropped from recent peaks, although they remain relatively elevated.
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