Author: user_mandy

OTC Precious metal trading activity rose for the second consecutive week, posting an all-around market rise in trading volumes. Spot #gold exceeded the 100 million oz barrier (traded weekly) for the first time since mid-August whilst prices also returned to levels not seen since late August/early September. It was a similar case for #silver where LBMA Trade Data recorded aggregated silver trading (across all instruments) just shy of 2 billion oz for the week- a level not seen since the VIPT price was $23.69/oz.

Trading volatility across the precious metal OTC markets continued into this week, as the trade volume lows set last week reverse to reclaim the highs set earlier this month. Although spot trading led the charge, the biggest gains were in options trading, where LBMA Trade Data recorded ▲88% and ▲130% in gold and silver respectively. Heavy derivative trading often speaks to a shift towards more hedging activity and with prices also up from last week, the trade data may be providing early indications of this change in sentiment. 

After a reasonably strong start to October activity seems to have already reversed over the last week, with OTC precious metals recording a fall in trading activity across all four metals. Options trading for #gold, #silver and #palladium led the decline with falls of between ▼-45% and ▼-60%. In contrast, #platinum options posted an increase, albeit with volumes climbing from the previous week’s low.

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 the website https://lnkd.in/dyffyD4

Precious metal OTC volumes recorded significant growth coming out of the summer doldrums where the gross weekly turnover dropped to as low as $250 bn for #gold, with this weeks’ gross gold turnover hitting $322 bn. The healthy boost also extended into #silver and #palladium which also saw a significant uptick at $39bn and $10bn respectively. #Platinum was the only metal to go the opposite way this week, with all instruments recording a fall in trading activity.

Subdued OTC trading activity over the last week with only palladium showing positive growth. #Gold OTC trading fell -9.4%, #silver -10.5%, and #platinum -4.2% with just #palladium bucking the trend with a 7.6% increase.

OTC precious metals trading bounced this week, recording growth across all four metals after weeks of dwindling trading activity. A spike in volumes often precedes a change in trend, and with #gold posting a ▼-2%, #silver a ▼-5%, #platinum a ▼-4% and #palladium a▼-9% change in spot price (WoW), that old adage has once again proved true.

OTC precious metal trading activity picked up slightly after last week’s lows. Spot trading in the #gold and #silver markets are up for the week but still ▼-20% & ▼-38% down compared to the same period last year. PGMs fared better as supply shortages across the auto sector boosted hedging activity across the two more industrialized precious metals. 

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