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Gold Activity Picks Up In June As Average Prices Decline Over 1%

Kitco News

(Kitco News) - Activity in the gold market picked up in June as prices continued to slide lower throughout the month, according to the latest trade data from the London Bullion Market Association.

The LBMA releases clearing statistics each month showing the net volume of gold and silver transferred between accounts of members, essentially providing a snapshot of the amount of trading activity.

The average number of gold ounces transferred daily in June increased month-on-month by 11.5% to 20 million ounces, the LBMA said. The increase in activity comes as the LBMA Gold Price averaged $1.281.57 an ounce, down 1.6% from May.

The value of those transfers increased by 9.6%% daily to $25.6 billion. The daily number of transfers was 2,618, which was 4.2% lower than May, with the clearers settling on average 7,632 ounces per transfer, 16.4% lower month-on-month.

Meanwhile, the silver market saw lackluster activity for the second consecutive month. The LBMA said that the volume of silver traded last month dropped by 1.2% to 229.1 million ounces. Silver prices were relatively stable in June with the LBMA reporting an average price of $16.523 an ounce, up 0.33% from May.

The value of the silver transferred fell 0.9% month-on-month to $3.79 billion. The average number of transfers in June was 1,004, which was 7.9% higher than the previous month. Clearers settled on average 228,236 ounces per transfer, 8.4% lower than in May.

The average gold/silver price ratio in May was 77.6, compared to 80.4 for May. This measures how many ounces of silver it takes to buy an ounce of gold, with a rising number meaning outperformance by gold, and vice-versa.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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