The early indications from last week’s daily trade data revealed the OTC precious metals (pm) markets were due to a boost in activity as traders return from their summer breaks at the same time as prices appeared to be on the rise. This week, while the aggregated weekly figures posted a decline due to the shortened trading week, #gold and #silver still managed to post a ▲+12% growth in the spot market and for silver more than double the activity in the options market. #preciousmetals
As at end August 2021, the amount of #gold held in London vaults hit a record high of 9,718 tonnes (+0.87% on previous month), valued at $567 billion, which equates to approximately 777,460 gold bars.
There were also 36,567 tonnes of #silver (-0.06% on previous month), valued at $28.3 billion, which equates to approximately 1,218,908 silver bars. More information can be found on our website – https://lnkd.in/dyffyD4#preciousmetals
OTC Precious metals markets are primed for a boost in activity despite the last week in August posting one of the lowest spot volumes traded this year (~▼20% across all metals). In addition, the swaps/forward markets were vibrant and prices appear to be recovering from recent lows. This week’s shorter trading period may not show the full picture in the weekly aggregated reports but figures from this week’s trade data reports show activity is picking up along with the price trend. #preciousmetals
As we near the end of summer we see the trend of reduced trading in the more liquid precious metals of #gold and #silver, with both metals recording their lowest weekly OTC turnovers since May – $266 billion and $30 billion respectively. However, the more industrial PGMs recorded a slight recovery last week with #platinum turnover hovering just below $7 billion and #palladium leaping to $11.3 billion. #preciousmetals
Precious metal OTC trading volumes continue to drift downwards over the summer as prices bounce back slightly from their recent lows. Hedging activity may be on the rise as options trading picks up across the #gold, #silver and #palladium markets. Meanwhile, #platinum trading suffers and falls across all instrument types as uncertainty over the economic impact of the resurgence of the delta variant impacts industrial and manufacturing sentiment. #preciousmetals
The recent boost in OTC trading seems to have been preceded by one of the steepest price drops seen across the precious metals market this year. With the spread of the delta-variant denting the outlook of more industrial precious metals and indications that the Federal Reserves may taper their stimulus support, we’ve seen a week of declining prices and investment demand within OTC trading. This was especially felt within the #platinum market which dropped to its yearly low at the same time as experiencing a ▼-14% in spot trading and a ▲150% options trading. #preciousmetals
A robust bounce in the OTC precious metals market this week after consecutive weeks of low trading volumes across all four metals. Through this week’s LBMA Trade Data reports we see OTC #gold turnover returning to the +$300 billion mark, #silver recording $48 billion and #platinum and #palladium recording $9 and $10 billion USD respectively. Indicative reports from early week trading suggests we are yet to fully turn the corner. However, with the gold price steadily climbing, we may see a late-summer surge in trading activity.
OTC precious metals trading slowed for a third consecutive week, with the spot and the swaps/forwards markets retracting across all four metals. The age old adage of ‘sell in May and go away’ may be proving true for the gold market at least, where since the end of May (Weekly LBMA Trade Data, week ending May 30) the weekly spot market has only traded in excess of 100million oz once (that occurred during week ending June 28).
Trading in OTC precious metals market shows little to no change in volumes over the last week with only #gold posting growth of a little more than 5%. This is in stark contrast to volumes from this time last year where the markets consistently turned over $400 billion per week in gold trading (▼$100 billion down y/y) and $60+ billion per week in #silver (▼$20 billion down y/y). Records were set in both metals towards the end of July and in August last year as the economic impacts of the pandemic began to unravel. Now, with the world economy steadily re-opening the markets appear to be anticipating the impact on precious metals on both the industrial and investment side.
OTC option trading across all four precious metals jumped this week, posting significant growth against an overall subdued backdrop. OTC #gold options saw the biggest increase by ▲63%, with #silver ▲10% and #platinum and #palladium by ▲49% and ▲27% respectively. Meanwhile trading within the spot, swaps and forward markets have been subdued across all metals with the exception of platinum, which posted an increase in trading on the back of a ▲32% growth in spot trading.