New York and London fight to be the gold-trading hub
Divergence at Comex continues to reverberate
Gold trading banks are preparing to significantly reduce their positions on CME Group's Comex exchange in New York, nine people familiar with the plans told Reuters in a report today.
Physical and futures prices diverged in March because of refinery shutdowns and transportation problems. That created losses for some banks and disillusioned others; HSBC lost $200 million.
In the gold market today, prices are up $9 to $1719 from a session high of $1727.