In this report
- Gold shining brightly in 2023
- Five consecutive months of growth for Aluminum futures
- Save the date: CME Group Precious Metals Dinner 2023
- Molybdenum Oxide added to the battery metals line-up; Cobalt and Lithium continue to grow
- Copper volatility triggers a surge in trading volumes
- Platinum recycling and the circular economy
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Gold shining brightly in 2023
The spotlight has turned to Gold futures and options as market volatility and turmoil persist, driving gold prices to trade trading back above $2,000 per ounce.
Combined April average daily volume (ADV) for Gold futures and options was 348K contracts, which has remained at a higher level compared 2022 trading.
Gold Weekly options adoption has continued its upward trend. Year-to-date ADV is 61K contracts, 24% higher than 2022 ADV.
Gold Wednesday Weekly Options April ADV of 2,361 contracts is the highest since launch.
Five consecutive months of growth for Aluminum futures
Aluminum futures are firmly established as a market hedging tool and have continued to flourish in 2023. A new record was set this April as over 4K contracts traded per day, +27% increase from March. We also hit a new single day record on April 13, trading 9,126 contracts.
Open interest reached an all time high of 3,626 contracts on April 19, extending through to December 2024.
The Commitments of Traders (COT) data for Aluminum futures is now available via the Commodity Futures Trading Commission (CFTC). The inclusion in the COT report is a significant milestone and provides the market more insights on the growing participation in the CME Group Aluminum market. Participation was at an all-time high in Q1, up 177% compared to the same period in Q1 2022.
Save the date: CME Group Precious Metals Dinner 2023
Our annual Precious Metals Dinner returns to the exquisite Gotham Hall on Wednesday, September 13, 2023.
Please contact us for attendance details and sponsorship opportunities at this year's dinner for this highly anticipated evening with industry leaders and engaging conversations.
When: September 13, 2023, 6.00 p.m. - 10.00 p.m.
Where: Gotham Hall, New York.
Molybdenum Oxide added to the battery metals line-up; Cobalt and Lithium continue to grow
Molybdenum Oxide (Platts) futures launched on March 13, adding further products to our Battery Metals suite. So far, 292 contracts or 169 tons have traded since launch, with 202 contracts of open interest as of May 3.
Cobalt and lithium continue to grow. Lithium open interest has reached over 1.5K contracts and extends out until June 2024. Q1 2023 was a record for cobalt with 167 contracts trading per day and open interest reaching 20K contracts (or 20K tons) on April 25.
Copper volatility triggers a surge in trading volumes
Copper options volume increased in Q1, partly fueled by the easing of lock-down measures in China and heightened market volatility, average daily volumes have surpassed 8K contracts, with open interest reaching a record high of over 180K contracts in February. This has resulted in a sharp increase in on-screen liquidity across monthly and weekly options.
Bid-ask spreads have been close to half a vol point wide on outright options. RFQ responses for option spreads have developed to be on par with Gold and Silver options RFQ responses.
Platinum recycling and the circular economy
According to the World Platinum Investment Council (WPIC), the circular economy reinforces the importance of managing impacts and consuming fewer resources to deliver sustainable outcomes. Read how the recycling of Platinum is lowering the environmental impact of these limited natural resources.
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All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.