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Gold, Silver Trading Activity Lackluster In October – LBMA

Kitco News

(Kitco News) - October was not a good month for gold and silver as the precious metals market was plagued with weak price momentum and soft trading activity, according to the monthly clearing statistics from the London Bullion Market Association (LBMA).

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 latest data showed the volume of ounces transferred in October was 18.7 million ounces, down 1% from the September figures.

The daily value transferred was relatively unchanged at $22.7 million, according to the LBMA. There were 2,985 transfers in September, 12.1% higher than September, with the clearers settling on average 6,258 ounces per transfer, down 11.7% higher than the prior month.

Meanwhile, the volume of silver ounces transferred in October dropped by 3.1% month-on-month to 211.4 million, with the value transferred down 1% at $3.08 billion. There were 842 transfers in October, which was 3.1% higher than the prior month, the LBMA said. Clearers settled on average 251,060 ounces per transfer, which was 6% lower.

The LBMA reported that the average gold/silver price ratio in October dropped to 83, down from September’s record high of 84. The ratio measures how many ounces of silver it takes to buy an ounce of gold, with a larger number meaning outperformance by gold prices, and vice-versa.

The LBMA said that gold prices averaged $1,214.73 an ounce in October, up 1% from the previous month; meanwhile silver prices averaged $14.584, up 2% from September.

The 18.7 million ounces of gold transferred daily in October was down 5.5% year-on-year from 19.8 million reported during the same period last year. Silver transfers of 218 million ounces daily were down almost 19T from 260.6 million in the same month of 2017.

In October, the LBMA held its annual precious metals conference and participants described the sentiment as positive but low energy.

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