London Gold Market Sentiment 'Concerning,' Gold Driven Mainly By USD - CME Group

The sentiment towards precious metals, particularly in London, is bleak, and it is really all about the U.S. dollar these days, said one executive at CME Group, the world’s leading precious metals exchange. According to CME’s executive director of metals products, Harriet Hunnable, the mood at the London Bullion Market Association conference in Vienna is ‘concerning.’ She explained that firms involved in the precious metals space in London are concerned with regulatory changes taking place and costs involved with doing business in the industry. ‘This is a conference where the elephant in the room is what will happen to this London market in the future,’ she told Kitco News. Hunnable highlighted the U.S. dollar as a key driver for the gold market today, stating that consumers are highly focused on the greenback's intraday movements. ‘We’re seeing a lot of trading on the exchange, we’ve had over 5% growth in the gold futures trading this year,’ she noted. ‘I think what we’re seeing now is a focus on what is happening in the U.S., a focus on when those rates will rise, and the strength of the dollar…intraday, we are seeing a lot of trading being driven by the dollar story,’ she added. Commenting on the recent request by lenders for changes to be made to the gold over-the-counter market, Hunnable said it may present a great opportunity for CME. ‘The implications are not exactly clear but I think that the intel that we’re having is that the desire to trade on exchange, to trade on platforms and clear trades is much stronger.’ October 21, 2015. (show less)

The sentiment towards precious metals, particularly in London, is bleak, and it is really all about the U.S. dollar these days, said one executive at CME Group, the world’s leading precious metals exchange. According to CME’s executive director of metals products, Harriet Hunnable, the mood at the London Bullion Market Association conference in Vienna is ‘concerning.’ She explained that firms involved in the precious metals space in London are concerned with ... (read more)

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