By Jan Harvey and Peter Hobson More than two tonnes of gold were traded through the London Metal Exchange’s new LMEprecious spot contract by late afternoon on its first day as the exchange began its bid to take a slice of the world’s biggest over-the-counter (OTC) gold market. The LMEprecious suite of gold and silver contracts was developed with a group of backers including banks Goldman Sachs and Morgan Stanley, which then set up EOS Precious Metals to promote trade in the contracts and benefit from a 50:50 revenue-sharing deal with the LME. The LME launched its contracts at 0000 GMT on Monday, though volumes did not pick up until the start of the European trading day at 0700 GMT. By 1609 GMT, 66,200 ounces (2.06 tonnes) of gold had traded on the LMEprecious spot contract , exchange data showed. That would be worth more than $80 million at current spot prices. “Typical interbank trade between one party and another would be 5,000-10,000 ounces in a single trade,” said Ross Norman, chief executive of bullion trader Sharps Pixley. “It will be nice to see what the trend is — if (it picks up), you’d begin to think, here we go.”
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Source: CTRM Center