'Free money' for banks as investors pile into fractured gold market

that dominate gold trading would buy metal in London and hedge their price risk by selling futures on Comex.

Those assumptions fell apart in March, when the virus shut supply routes. The link between London and New York ruptured, prices diverged sharply, and activity fell in both markets.Futures prices became unmoored from London rates, sometimes trading cheaper but often $20 or more an ounce higher, and higher still compared to Asian countries.

To swap the February 2020 contract for the April one cost around $6 per ounce of gold, CME and Refinitiv data show -- or around $240 million in total for the roughly 400,000 100-ounce contracts trading. The scope for big profits has attracted more sellers into the market, from smaller banks to hedge funds and asset managers.

The money tree..

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What investment banks made on the Snowflake IPO in fees - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Where can I apply?🤔
Source: BusinessInsider - 🏆 729. / 51 Read more »

Secret Documents Show How Criminals Use Famous Banks To Finance Terror And DeathThousands of secret “suspicious activity reports” offer a never-before-seen picture of corruption and complicity — and how the government lets it flourish.
Source: BuzzFeed - 🏆 730. / 51 Read more »