◆ Physical Demand Supply Imbalance Spreading from Gold to Silver and Platinum and Prices To Gain
◆ ‘Chaos’ in gold markets ripples to silver and platinum markets
◆ Silver, platinum exchange physical bar deliveries surge as banks reposition
◆ Falling open interest signals increase of metal on CME exchanges as turmoil causes inventories to jump amid efforts to meet the shortages
The chaos that engulfed the gold market in March as the global pandemic choked off physical trading routes is rippling through other precious metals, resulting in price dislocations and a surge in exchange inventories for silver and platinum.
The gold market was thrown into turmoil in March as lockdowns grounded planes and closed refineries, leading traders to worry they wouldn’t be able to get gold to New York in time to deliver against futures contracts. That caused futures, which typically trade close to the London spot price, to soar to a premium, inflicting losses on banks that struggled to close arbitrage bets and spurring them to shift some positions out of New York futures.
There are signs that the dynamic isn’t limited to gold. Silver and platinum futures have traded at elevated levels relative to spot metals since early April. And as in the case of gold, the premiums are spurring big increases in on-exchange inventories in New York.
On Monday, first-notice data for the July silver contract on the Comex in New York showed the largest single day of deliveries in almost 25 years. Deliveries for platinum on the New York Mercantile Exchange were more than five times the next largest month this year.
Those deliveries serve as a way for banks to reduce their exposure to price dislocations and limit risk, said David Holmes, a senior vice president at Heraeus Metals New York, a precious metals refiner.
Full article via Bloomberg
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GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)
03-Jul-20 1774.65 1772.90, 1426.29 1422.40 & 1580.33 1577.70
02-Jul-20 1771.85 1777.45, 1415.00 1421.60 & 1568.97 1577.13
01-Jul-20 1787.40 1771.15, 1444.90 1424.63 & 1592.93 1574.82
30-Jun-20 1770.70 1768.10, 1444.18 1436.58 & 1580.35 1577.32
29-Jun-20 1768.80 1771.60, 1434.67 1440.31 & 1571.23 1573.54
26-Jun-20 1762.10 1747.60, 1420.61 1414.51 & 1570.03 1559.91
25-Jun-20 1758.55 1756.55, 1412.64 1414.73 & 1565.29 1565.79
24-Jun-20 1775.70 1766.05, 1420.74 1416.90 & 1573.63 1567.55
23-Jun-20 1755.60 1768.90, 1409.85 1416.36 & 1556.17 1560.70
22-Jun-20 1745.45 1761.85, 1405.26 1418.11 & 1555.72 1567.17
19-Jun-20 1728.55 1734.75, 1392.17 1401.16 & 1541.18 1545.49
18-Jun-20 1732.65 1719.50, 1384.73 1383.51 & 1539.29 1532.93
17-Jun-20 1717.30 1724.35, 1368.69 1375.17 & 1527.88 1537.26