Gold Volatility Boosts Trading Volumes in April at Japan's TOCOM

The Tokyo Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (TOCOM) announced that April 2013 trading volume averaged 155,999 contracts per day, up 38.5% from March 2013. Average daily volume for Gold and Platinum increased significantly, offsetting decreases in Crude Oil and Kerosene: Gold was up 71% to 81,898 contracts and Platinum was up 12% to 20,240 contracts. Crude Oil was down 1.4% to 5,491 contracts and Kerosene was down 14.7% to 3,944 contracts.

Volume increases are considered to have originated from heightened Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term during the month. In the first half of April, prices remained high at TOCOM with expectations of an economic recovery gaining momentum and a depreciation of the yen. Later in the month, commodity prices dropped sharply with economic uncertainty after the FRB discussed a possible reduction of QE3 and the announcement of a slowdown in Chinese GDP. The sharpest price declines were in Gold and Platinum: Gold (back contract month) fell from the month’s high of 5,078 yen per gram on April 11, to 4,132 yen on April 16. Platinum (back contract month) fell from 5,000 yen per gram on April 10 to 4,301 yen on April 16. The market recovered somewhat toward the end of the month.

Open interest at the end of April for all listed products totaled 304,048 contracts, a decrease of 82,682 contracts from the prior month.