LBMA Media Centre

This is a dedicated area of the LBMA website devoted to keeping you up to date with the latest news updates, as well as past and present Press Releases, Publications and Speeches.

Latest News

Find out what the LBMA and its committees are currently doing.

Read More

Webinars

LBMA webinars with all the latest market developments.

Read More

Publications

LBMA publications past and present including articles from the Alchemist.

Read More

Media Library

LBMA’s Media Library, view all our content here.

Read More

Q3 2020 Precious Metals Report - The End of a Long Hot Summer?

Wednesday, October 07, 2020

Daily London OTC Gold trading volume averages 36.3m oz equivalent to some $69.3 bn.

During the third quarter of 2020, the London gold price rose from $1,768.10 per troy ounce, to $1,886.90 at end-September, a gain of 6.7% over the quarter, and 23.89% year-to-date. But these impressive, although straightforward statistics mask arguably the most momentous run in the gold price since daily records began a little over a century ago.

During five days in August, reflecting serious concerns about the global economic collapse prompted by Covid-19, London gold traded above $2,000, topping out at $2,067.25 on August 7, a level just below the highest prediction ($2,080) in LBMA’s 2020 Precious Metals Forecast Survey of professional analysts (published end-January).

The breach of the $2,000 price milestone first occurred at the London pm gold auction on August 5 but had been flagged by exceptional turnover volumes in preceding days, most notably on July 29 when a record 89.4m oz changed hands to a value of $174.3bn. By comparison average daily gold trading during the quarter was 36.3m oz with an average value of some $69.53bn.

The heady record days of August, however, faded as summer turned to autumn. The last time gold traded above $2,000 was August 18; since then the price has eroded some 8.6% below the peak, with turnover volumes dropping to below 2020’s daily average, as September came to an end.

It is debatable whether September’s price moves reflected profit-taking, or perhaps better than expected (although still dire) economic statistics from the US and elsewhere, but if so the equity markets were unimpressed as the S&P 500 fell some 4% during the month. Or perhaps investors and traders are coming to view the ongoing pandemic as the new normal, and inertia is creeping in – a depressing thought.

Lest we forget, longer-term investors in silver have had a better run through 2020 ytd than their more high-profile gold colleagues. Again there were five big summer days when the London price exceeded $28 per oz – four in August and one on September 1 when the price peaked at $28.885 per oz (a level not seen since Q1 2013), a gain of 60% on the year. As the quarter ended, silver, like gold, faded somewhat to close at $23.725.

The table below highlights the London gold price highs as well as the volume and value of gold trade data.

Date Price Date Volume Value
Aug 5 $2,048.15 pm Jul 29 89.4 mn oz $174.3 bn
Aug 6 $2,067.15 pm Aug 8 52.1 mn oz $101.1 bn
Aug 7 $2,061.50 am Jul daily av 38.5 mn oz $71.7 bn
Aug 10 $2,044.50 pm Aug daily av 36.8 mn oz $72.4 bn
Aug 18 $2,008.75 pm Sep daily av 33.6 mn oz $64.7 bn
Back