Basel 3 and January 01Basel 3 reforms hit the London merchantile exchange starting January 01. Among the changes:
Paper gold transactions can no longer be off the balance sheet.
Paper gold transactions have to be backed by 85% real gold or other liquid assets.
These reforms should make real gold transactions more desirable than paper gold transactions and rein in the volatile paper gold market. This should be a positive for gold in 2022. In the meantime banks and traders are reducing their paper gold exposure. Expect a lot of volatility in the Gold market in the final weeks of 2021.