UNITED KINGDOM July 03 2017 10:53 AM
LONDON (Scrap Register): Trading activity in gold was lackluster last month as the price fell, according to the latest trade data from the London Bullion Market Association.
The LBMA releases clearing statistics each month showing the net volume of gold and silver transferred between accounts of members, essentially providing a snapshot of the amount of trading activity.
The average volume of gold ounces transferred daily fell by 4.8% month-on-month to 20.8 million. The corresponding value transferred daily dropped 6.4% to $25.8 billion.
The average number of transfers was 2,696, down 11.9% from the previous month, with the clearers settling on average 7,697 ounces per transfer, 8% higher than the previous month. The weak activity came as the gold price averaged the month at $1.245 an ounce, down 1.6% from April.
While interest in gold was down, the silver market attracted more trader attention as prices averaged $16.76 an ounce, down 7.2% from April.
The volume of silver ounces transferred daily increased significantly by 21.7% to 265.7 million, the highest level since February 1999. The corresponding value of ounces transferred increased by 13% to $4.45 billion, the highest level seen in more than four years, the LBMA reported.
The number of silver transfers daily fell by 9.1% to 1.029, with the clearers settling on average 258,111 ounces per transfer, 33.8% higher than the previous month.
The average gold/silver price ratio in May was 74.3, its highest level since June 2016, the LBMA said.