Intercontinental Exchange, owner of the New York Stock Exchange, launched a new gold futures contract in London, seeking to establish a derivatives market in the world’s leading physical bullion hub. The contract, which began trading Monday alongside new futures for silver, platinum and palladium, gives investors a way to hedge gold exposure directly in London, a key trading hub with more than $180 billion in over-the-counter volumes per day. The amount of gold held in London vaults was 9,632 metric tons at the end of August, worth about $1.4 trillion, according to the London Bullion Market Association.
London has lacked a major gold futures market in recent years, leaving New York as the dominant center for exchange-traded gold derivatives. The London Metal Exchange closed its gold futures contract in 2022 due to low levels of trading activity.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing