Chinese bank ICBC becomes a ‘Market Maker’ in London!

Gold Today Gold closed in New York at $1,230.20 up from $1,214.90 on Tuesday. On Wednesday morning in Asia, it fell to $1,226. London pulled it back slightly to see the LBMA price setting at $1,225.75 down from $1,231.50 on Tuesday.

The dollar index is slightly higher at 94.93 up from 94.72 yesterday. The dollar is stronger against the euro at $1.1345 up from $1.1370 on Tuesday.

The gold price in the euro was set at €1,080.43 down from €1,083.11 on Tuesday.

Ahead of New York’s opening, the gold price was trading at $1,220.85 and in the euro at €1,076.11.  

Silver Today –The silver price closed in New York at $15.13 down from $14.92 up 21 cents on yesterday. Ahead of New York’s opening the silver price stood at $15.02.

Price Drivers

As you can see in the ETF section below the gold and silver markets are becoming relatively quiet on the pricing front. Likewise the trading pattern of both gold and silver are tightening, particularly in gold. This points to a strong move, in the near future.

ICBC is made a ‘Market Maker’ in London

ICBC Standard Bank has been reclassified as a spot Market Making Member of the London Bullion Market Association with effect from yesterday. In order to qualify as a LBMA Market Maker, a company must offer two-way quotations in both gold and silver to the other Market Makers throughout the London business day. In deciding on the issue of reclassification, the Committee takes account of the views of the other Market Makers on the performance of the candidate company during an approximately three month probationary period.

Why is this of particular note? There are many reasons which we examine in our newsletters, but one is that the ICBC cannot export gold from China to sell in London, so where will it get gold from to sell?

Gold ETFs – We saw sales of 0.28 tonnes of gold sold from the SPDR gold ETF on Tuesday. There were also sales of 0.28 of a tonne of gold from the Gold Trust yesterday. This leaves their holdings at 815.435 715 and 186.96 tonnes in the SPDR & Gold Trust respectively.  

Silver – The silver price continues to consolidate around $15 ahead of a strong move either way.

Julian D.W. Phillips | | StockBridge Management Alliance


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