The spread between spot gold and futures prices has largely “normalized” now that two Swiss refineries are operating again, said Commerzbank.

The refineries were among the many businesses around the world that were locked down for a while as part of the global effort to combat the COVID-19 pandemic.

This contributed to futures prices rising as much as $70 above spot metal, a spread that industry veterans said they had never seen before.

However, two of the world’s biggest gold refiners, Valcambi and Argor-Heraeus, have resumed operations, making significantly more supply available to the market.

Swiss refineries process some 1,500 metric tons of gold annually, which Commerzbank said is roughly one-third of the global supply of gold.

Live 24 hours gold chart [Kitco Inc.]

The price differential between the gold forward contract for short-term delivery on the Comex in New York and the spot price in London, which had risen significantly as a result, has likewise normalized again now that the Swiss refineries have resumed normal operation.

Both prices are virtually on a par again.” The futures are now only a few dollars an ounce higher. As of 9:05 a.m. EDT, spot gold was $10.15 higher to $1,695.10 an ounce, while the most active June futures were up $10 to $1,698.60.

Kitco.com / ABC Flash Point News 2020.

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Nassau
Nassau
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07-05-20 10:22

When will gold reach $2.000 ?