Gold Volumes Lose their Shine at TOCOM, July Activity Drops 12.8%

Commodities, an asset class that investors use in difficult times as a hedge against inflation have been witnessing a gradual decline in value and activity. Tokyo’s main commodity bourse has seen a drop in trading metrics as investors stay shy of declining prices in major commodities. Its most liquid contract, TOCOM Gold traded 47,716 contracts in July, a decrease of 12.8% from 54,721 traded in June. The downward trend was seen in the most active contracts which included; Platinum, down 24.4% to 15,100 contracts; and Crude Oil, which was down 22.8% to 3,507 contracts.

Although volumes were down, the 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 saw an uptake in active contracts, open interest at the end of July for all listed products totaled 298,382 contracts, an increase of 8,208 contracts (2.75%) from the previous month.

The slowdown in activity can be attributed to various factors, most notably; Current Employment Statistics, USDA World Agricultural Supply and Demand Estimates Report as well as FOMC meetings. In a statement made by the exchange, it said that during the announcement of this economic data volumes at “TOCOM tends to be subdued in such situations."

Regulations in Europe and the United States along with M&A activity have been keeping the exchange sector in the limelight. Since the global recession of 2008, Asia saw a proliferation of new venues, in particular a high uptake in commodity trading venues.

Keiko Koyama of the Tokyo Commodity Exchange attributes these changes to the new opportunities Asia offers, he said in a comment to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates: “Asian investors require markets to invest locally, and the global market participants require new markets to trade in. For the latter, new and tougher regulatory environment in the U.S. and Europe is said to have contributed to the growing presence of Asian marketplace. With regard to the commodities trading, in particular, it is natural for advancing economies require market with price discovery functions.”