By Henry Sanderson
Financial Times, London
Thursday, May 28, 2020
https://www.ft.com/content/550d909a-2c24-47f6-9233-a0723601dd10
Big bullion banks including HSBC have pulled back from trading gold futures after disruption in the market that flared up in the coronavirus crisis.
Stung by an unprecedented gap between prices for futures and physical gold in March that contributed to a $200m paper loss for HSBC in one day, banks have pulled back, said traders.
The move has helped to drag daily trading volumes for futures contracts on New York's Comex exchange down to the levels seen at the start of the year, even as gold prices have climbed to seven-year highs at around $1,700 per troy ounce.