Gold stocks held in New York vaults registered with CME Group have jumped almost 50% since the end of last week after the exchange launched a new contract and a price premium since the outbreak of the coronavirus encouraged stockpiling.
The premium on CME's Comex exchange over spot gold traded in London rose sharply again on Tuesday as supply routes remained partially closed and banks and brokers wary of the price gap reduced trading.
CME said late on Monday that gold stocks in Comex-registered vaults totalled 15.9 million ounces, a record high and their highest level since ever and worth around $26 billion.
Of the new arrivals, 4.8 million ounces were 400-ounce bars of the type used in London, which cannot be delivered against Comex's main gold futures but are eligible for new contracts launched on Monday to address the supply concerns.
Gold futures on Comex leaped above London spot prices two weeks ago after coronavirus control measures grounded passenger airlines on which gold usually shipped and closed several major precious metals refineries.
Traders feared it would be impossible to ship gold from London, a major storage centre, to settle contract obligations in New York, where much more gold trades than is stored.
Adding to the difficulty, Comex's main gold futures run on 100-ounce bars, meaning 400-ounce bars from London must be melted down and recast, usually in Switzerland, before shipping to New York.
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