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..
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