The amount of gold transferred between accounts of London Bullion Market Association members fell 6.4% month-on-month in July to an average of 17.9 million per day, the lowest level since October 2010, the organization said Friday.
The value of the transfers fell by a similar percentage, to $28.6 billion. The average number of transfers decreased by 12.6%, to 2,764 after a record high in June.
The LBMA releases clearing statistics each month showing the net volume of gold and silver transferred between accounts of members, which essentially provides a snapshot of the trading activity.
The organization described trading for both gold and silver as âsubdued,â with the first half of the month âlacklusterâ before activity picked up in the second half, fueled by a step-up in sovereign buying and renewed interest in long positions from hedge funds. The weak Indian rupee continued to cool demand in this nation, and physical activity was also muted in China, the LBMA said.
Silver ounces transferred fell by 5.3% in July to a daily average of 141.5 million, the lowest since April, the LBMA said. The number of silver transfers declined by more than 17%, to an average of 755 per day. The value of the transfers fell by more than 7% to $3.88 billion.
The year-on-year comparisons show that the number of gold ounces transferred fell by 9% and the number of silver ounces transferred fell by 11.5%.
By Allen Sykora of Kitco News