Gold Traders Issue Largest Delivery Notice on Record at Comex

© Reuters.

(Bloomberg) — Traders on the main exchange in New York have issued the largest daily delivery notice on record.

In the latest sign of how the market’s norms have been upended by the price disconnect that struck in March, traders on Thursday declared their intent to deliver 3.27 million ounces of gold against the August Comex contract, the largest daily notice in bourse data going back to 1994.

While millions of ounces of gold trade on the futures market every day, typically only a tiny fraction of that goes to delivery. But in recent months, huge amounts of bullion have flowed into New York and the Comex has seen record deliveries.

That’s the result of a disconnect between prices in the two main markets, London and New York, that began in March as lockdowns grounded flights and shuttered refineries.

Futures, which typically trade in lockstep with the London spot price, soared to a premium of as much as $70 an ounce. Since then, that premium has been smaller, but there have been regular flare-outs.

In response, arbitragers have shipped precious metals to New York to capture the price differential — and the result has been much larger than normal deliveries against Comex futures.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

See also  Gold Rebounds as China Deal Doubts Grow; Palladium Smashes Record   

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.