Q2 2020 Metals Update

• In light of recent logistical developments in the gold market, COMEX introduced a physically-delivered Gold contract with additional delivery and trading functionalities on April 6. This contract enables delivery of Kilo, 100-ounce and 400-ounce bar sizes in current COMEX-approved depositories for maximum flexibility.
• Our existing GC futures and options contracts will remain entirely unchanged. This includes GC futures and options.
  
• The new 4GC and benchmark GC contracts are not fungible, meaning that a position in GC cannot be exchanged into an equivalent position in 4GC. However, 4GC is enabled for inter-commodity spread trading against GC on CME Globex, enabling customers to trade 4GC against GC onscreen without execution risk on either leg of the trade.

View the 4GC homepage

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• CME Group’s New York depositories are operating normally as they have been deemed essential businesses and deliveries are occurring as planned. 
  
• As of April 5, 2020, our depositories currently hold nearly 11 million ounces of GC good delivery gold (with 7 million ounces eligible), nearing a record high in terms of stock levels. Find current levels on our website here.
  
• Gold stocks in London remain healthy with the latest published numbers showing record stocks of 8,326 tonnes of gold, which is equivalent to 666,045 standard 400-ounce gold bars. Visit the LBMA website for more information.

• Dynamic Circuit Breakers monitor for significant price movements during a trading session. DCBs define an upper and lower limit of how far an instrument is allowed to move in a configured time interval.
  
• DCB parameters for Gold, Silver, Copper, and Platinum will be increased to 10% effective April 6. Palladium DCB level has increased to 10% effective March 16. 

Read the Metals Dynamic Circuit Breakers SER

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