LBMA: Gold Trading Activity Stalls In September As Prices Consolidate
(Kitco News) - Trading in the gold market cooled last month as prices consolidated following a busy summer, according to the latest trade data from 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 volume of gold ounces transferred daily in September fell by 18.8% month-on-month to 19.8 million ounces, the LBMA said.
The value transferred daily dropped by 17.4% to $30 billion. There were 4,026 daily transfers in September, broadly down 5.6% prior month, with the clearers settling on average 4,927 ounces per transfer.
Meanwhile, the volume of silver ounces transferred in September increased by 18.8% to 252.9 million ounces, the LBMA said.
The value transferred increased by 25.9% $4.6 billion daily. There were 1,682 daily transfers in September, 25.2% higher month-on-month, with the clearers settling on average 150,327ounces per transfer.
The LBMA noted that the gold/silver ratio continued its decline in September, averaging the month at 83.1. The ratio declined from its multi-year high of 90.6 in June.
The LBMA also noted how popular gold was during the summers as the metal started its unprecedented rally. As of the end of July 7,811 tonnes of gold were held in commercial vaults, the highest level since February 2018. However because of the price rally, the value of gold held in commercial vaults hit a record high of $358.50 billion.
Meanwhile 35,479 tonnes of silver, down slightly from June, was held in commercial vaults and valued at $18.80 billion.
“It is interesting to note that the ratio of holdings held at the Bank of England against those held in commercial vaults was 2.1 in January 2017 but has since fallen to 1.7 in July, meaning that the proportion of the total held by commercial vaults has increased,” the LBMA said in the report.