Gold market sees lower trading activity in April LBMA

New York (Jun 1)  April appears to have marked the low point in the gold market so far this year as trading activity dropped to its lowest point since November, according to the latest trade data from the London Bullion Market Association (LBMA).

According to the LBMA’s latest clearing statistics, the volume of gold ounces transferred in April fell by 6.7% month-on-month to 18.6 million ounces.

The corresponding value of the ounces transferred fell more than 4% to $32.8 billion with the clearers settling on average 4,244 ounces per transfer, up 16% from the previous month.

Since April, the gold market has been on a tear, with prices rising 11% to push above $1,900 an ounce.

Meanwhile, the number of silver ounces transferred in April saw an even sharper decline, falling by 13.8% to 227.2 million ounces, the LBMA said.

The corresponding value transferred dropped by 13.7% to $5.83 billion. The number of transfers in April fell by 19% to 1,749, with the clearers settling on average 129,949 ounces per transfer, up 6.2% on the previous month.

Despite the drop in trading activity, silver continued to outperform gold, with the gold/silver ratio falling to 68.7, down from its peak of 111.9 seen in April 2020.

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