COMEX New York vaults add 730 tonnes of gold since the end of March

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by Ronan Manly, BullionStar:

Back in the last full trading week of March beginning Monday 23 March when bullion banks in London failed to deliver gold in Exchange for Physical (EFP) transactions, this kicked off a huge and unprecedented divergence between COMEX 100 gold futures contract prices and the interbank spot gold price quoted in London, with for example, the COMEX price trading by over $80 higher than spot on Tuesday 24 March.

This price differential, known as the COMEX-spot spread or the basis (between the gold futures price and the bullion bank gold spot price), is also used to calculate pricing on gold Exchange for Physical (EFP) transactions, hence a lot of media talk at the time and indeed since then has referred to the March’s price rupture phenomenon as an EFP spread divergence, COMEX spread blow out etc.

The COMEX-spot spread blow out which followed the gold delivery failure and which also triggered an associated illiquid London market (causing gold market maker bid-ask quotes to blow out to over $100 on 24 March), was sufficiently terrifying for the bullion banks that operate the gold market in London to rush out a damage control statement on the morning of

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