ICE Launches Gold Futures in London’s Bullion Market
Intercontinental Exchange (ICE), the company behind the New York Stock Exchange, has introduced gold futures trading in London. This move brings exchange-traded precious metal derivatives to the world’s largest physical bullion market. The new contracts, launched this week, are tied to London’s daily gold price auctions. ICE has also rolled out futures for silver, platinum, and palladium.
London dominates physical gold trading, with daily over-the-counter transactions nearing $190 billion and vaults holding gold worth about $1.4 trillion. Futures contracts allow traders to manage price exposure without immediate physical asset transfers. The new ICE contracts provide an exchange-based way to trade gold price movements linked to London’s benchmark auctions.
Previous attempts to establish gold futures in London have failed. The London Gold Futures Market closed in 1985 due to low trading activity, and the London Metal Exchange discontinued its gold futures in 2022. ICE’s latest launch complements its existing role in London’s precious metals market, including operating daily auctions for benchmark prices.
ICE aims to offer London’s physical bullion market participants another tool to trade and manage precious metal price exposure. The exchange hopes this initiative will succeed where past efforts faltered, leveraging its established presence in the market.