BNN Bloomberg/Jack Farchy and Phoebe Sedgman/7-31-2020
“Traders on the main gold futures exchange in New York have issued the largest daily delivery notice on record. In the latest sign of how the market’s norms have been upended by the price disconnect that struck in March, traders on Thursday declared their intent to deliver 3.27 million ounces of gold against the August Comex contract, the largest daily notice in bourse data going back to 1994.”
Chart note: This report includes a telling chart. By taking delivery, large scale investors are simply using the COMEX as a source for physical bullion – something that has never happened before to the degree it is happening now. The distortions in March broke a downtrend at $1470. From there it has been more or less a straight shot to Friday’s close at the $1979 level. August deliveries are roughly double the declarations last March.
