Gold price sees historic trading action in August - CME's Chang
(Kitco News) - The gold market has seen historic trading activity in the last few months and according to one exchange the trend is not expected to change anytime soon.
In a roundtable discussion on the precious metals market, Young-Jin Chang, managing director and global head of Metal Products for CME Group, said that solid fundamentals are expected to drive demand for precious metals markets through the end of the year.
“We have so much uncertainty, concerns about growing government debt and low interest rates. All this favors precious metals,” she said. “Gold and silver will very much be in play for the foreseeable future.”
Chang provided some impressive statistics to highlight how active the gold market has been. She noted that trading activity is expected to see its fifth year of consecutive growth in the precious metals market.
The CME futures market is on track to reach 90 billion ounces of gold traded this year. As of the end of August, nearly 40 million ounces of gold have been traded each day, an increase of 3% compared to the trading activity in the first eight months of 2019.
In August, which saw gold prices hit all-time highs above $2,000, the CME saw record trading activity in gold. Quoting exchange stats, Chang said that the gold market saw average daily volume of 908,000 contracts.
Meanwhile August 11 was the CME’s second highest volume day in its history as more than 1.5 million precious metals contracts were traded during the session.