Gold Market Update
High volatility across the markets is leading to sharp moves in indices and currencies and spreads in the spot market have widened dramatically, as market makers reduce their risk appetite.
Specific to XAU, liquidity within the futures market remains thin and unstable, as noted in the following comments from the trading desk at one of our Tier One bank LPs:
“The link between CME future and OTC spot has broken down. I think because refineries are shutting down and it is impossible to move metal. And in addition, market-makers who had short EFP [Exchange of Futures for Physical] position have blown-up.”
We are doing our best to manage these issues for you, our clients, however please note that XAU pricing may be intermittent as we work on bringing spreads back into line.
Filtration limits are being relaxed in order to minimise the possibility of price cuts, however we request you remain aware and vigilant to the increased risk of stop-outs on MT4/MT5 across products.
Please be aware that there is also a corresponding increase in Tom-Next costs, which we expect to continue for the foreseeable future.
Thank you for your continued support and understanding.
Please note that the Blackwell Global server time is currently set to GMT+2.