ICE Launches Precious Metals Futures in London’s Dominant Gold Market

The Intercontinental Exchange (ICE), which also owns the New York Stock Exchange, has launched a new futures trading platform for precious metals in London. This move brings exchange-traded futures contracts directly linked to London’s daily gold price auctions, a first for the city. The new contracts cover gold, silver, platinum, and palladium, offering market participants a new way to trade precious metals price exposure from London.

London’s physical gold market is the largest in the world, with daily over-the-counter transactions reaching $190 billion. The city’s vaults hold approximately $1.4 trillion in gold bullion. Despite its dominance in the physical market, London has lacked a major gold futures market for many years. Previous attempts, such as the London Gold Futures Market in 1982 and the London Metal Exchange’s gold futures in 2017, both failed to sustain trading activity.

ICE’s latest initiative leverages its existing role in London’s physical metals market, as it already operates the daily auctions that set benchmark prices for these metals. This strategic advantage may help ensure the success of the new futures contracts, addressing past challenges faced by other exchanges in the region.