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Gold Trading Activity Hits 18-Month High In June Says London Bullion Market Association

Kitco News

(Kitco News) - Action in the gold market picked up significantly in June as prices saw their best monthly gains in three years, according to the latest trading data 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 volume of gold ounces transferred daily in June rose by 30.4% month-on-month to 24.2 million ounces, with the corresponding value increasing 38% to $32.9 billion, the LBMA said. According to the report, trading activity saw its highest volume in 18 months.

There were 3,997 transfers daily in June, 34.8% higher than the previous month. Clearers settled on average 6,065 ounces per transfer, 3.3% lower.

Although silver continued to underperform gold in June, the LBMA reported a significant increase in trading activity.

The number of silver ounce transferred daily in May rose by 37.6% to 291.4 million ounces, with the corresponding value 37.6% higher at $4.37 billion, the LBMA said. July’s trading activity was the highest since January 2018. There were 1,329 transfers daily in June, up 35.9% from the previous month, with the clearers settling on average 219,262 ounces per transfer, a rise of 1.3%.

The average gold-silver price ratio in June was 90.66, the highest in 26 years the LBMA said.

The 24.6 million ounces of gold transferred daily last month was up year-on-year from 20 million in June 2018. Silver transfers of 291.4 million ounces daily were up year-on-year from 229.1 million.

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