ICE Launches Gold Futures in London After Four-Year Hiatus

Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, has launched gold futures trading in London, marking a significant move in the precious metals market. The new contracts, which also cover silver, platinum, and palladium, are priced based on ICE's daily London auctions. These auctions set benchmark prices for the four metals and have seen participation grow from four to 20 entities, including major players like Jane Street, DRW, Goldman Sachs, and Citi.

London's trading industry has long been a hub for over-the-counter gold deals, handling nearly $190 billion a day and holding about $1.4 trillion of gold in its vaults. However, the city has lacked a gold futures contract since the London Metal Exchange (LME) shut its own in 2022 due to low volumes. The new ICE contracts aim to fill this gap, covering delivery from a single day up to six months ahead and clearing through ICE's London arm.

ICE's move comes as it competes with CME Group, which has dominated the gold futures market with an average daily trading volume of roughly $125 billion in the first half of 2026. Chris Rhodes, president of ICE Futures Europe, emphasized that derivatives markets support the physical market, highlighting the importance of this new offering. The launch also follows a call from the London Bullion Market Association for gold futures trading to return to Britain.

The introduction of these contracts in London could help mitigate price dislocations that occurred after US tariff announcements in April 2025, which led to New York futures trading above London physical prices. Additionally, central banks have been moving bullion, with the Dutch central bank recently transferring more than 78 tonnes of gold from New York to London due to geopolitical concerns.