CME Reports Record Gold Futures Volumes on Increased Volatility

A sharp rise in volatility in Gold prices led the CME to announce that on Wednesday, November 28th, the exchange

A sharp rise in volatility in Gold prices led the CME to announce that on Wednesday, November 28th, the exchange hit a record high for daily trading volume in its COMEX Gold futures products. On the day, 486,315 contracts were traded which eclipsed the previous record set on May 29th 2012 of 484,721.

Prices of Gold have become more active as trader’s have been speculating on its outcome in the face of the US Fiscal Cliff talk, the Bank of Japan easing, the FED’s QE3 program, and ongoing problems in the Eurozone. On one hand you have the Gold bugs expecting worldwide inflation as currencies devalue and $2000/oz targets for the metal. On the other side are traders that see slower growth taking place in China and the rest of the Asian/Pacific region and are betting on an overall decline in commodity prices as demand declines. The result is a tug-of-war between two spirited groups which has led to prices of Gold experiencing many days of huge gains or losses.

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Gold Trading on its Record Day
Gold Trading on its Record Day

CME Group Announces Trading Volume Record for its Gold Futures Contracts

CHICAGO, Nov. 29, 2012 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace, today announced a record in daily trading volume for COMEX Gold Futures. These contracts are listed by and subject to the rules of COMEX.

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On November 28, COMEX Gold Futures reached a record daily volume of 486,315 contracts, surpassing the previous record of 484,721 set on May 29, 2012.

“Our Gold Futures contract continues to be the most liquid and transparent benchmark in the global gold marketplace,” said Harriet Hunnable, Managing Director, Metals Products, CME Group. “This record volume is indicative of investors’ reliance on gold futures to manage their exposure to changing world events as well as supply and demand factors in the metals marketplace.”

CME Group has shown robust activity across many metals products this week which has pushed average daily volume (ADV) for its metals complex above 415,000 contracts so far in November, marking the second time this year that monthly ADV has edged higher than 400,000 contracts.

As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based oninterest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operatesCME Clearing, one of the world’s leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.

CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.

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