HSBC Lost US$200 million in Gold Trading



May 18th from WikiFX news.According to US media, HSBC lost around US$200 million within one day in March, much exceeding the maximum loss estimated by HSBC‘s risk value model and costing a whole year’s total gain in gold trading.
In other words, HSBC lost a whole years gold-trading profit within just one day.
The loss has largely been due to the extremity in March, as the lockdown measures cut off material golds supply channel around the globe. Price gap between New York gold futures and London spot gold hit a record high of US$70.
In general, the spread between spot gold and futures is no more than a few dollars per ounce. Banks usually sell gold futures in New York as a way to of hedging for the positions in the London market, and a significant variation of prices in the two markets will cause them heavy losses.
According to HSBC, the loss due gold‘s market value was attributed to challenges gold refinement and transportation.As spot-gold trading expanded unprecedentedly, this affected HSBC’s gold leasing and financing businesses, as well as other hedging activities, leading to a loss.
HSBC is not the only institution that suffered from gold markets unusual volatility. The long-established Bank of Nova Scotia in Canada also closed precious metal trading department in March, allegedly for the same reason.

Latest News
-
Silver Price Forecast – Silver Markets Continue to Move With Dollar
WikiFX | Industry 2021/1/26 8:36:02
-
Silver Price Daily Forecast – Silver Moves Higher On Weaker Dollar
WikiFX | Industry 2021/1/26 7:01:24
-
EUR/USD Mid-Session Technical Analysis for January 26, 2021
WikiFX | Industry 2021/1/26 7:41:42
-
Stocks Mixed Amid Stimulus Delay Worries
WikiFX | Industry 2021/1/26 5:41:18
-
USD/JPY Shows ABC Zigzag Pattern in Bullish Reversal
WikiFX | Industry 2021/1/26 2:40:55
-
Gold and Silver Traders Focus upon Upcoming FOMC Meeting
WikiFX | Industry 2021/1/26 1:15:01
-
Natural Gas Price Fundamental Daily Forecast – Weather Driven; Strengthens Over $2.678, Weakens Under $2.630
WikiFX | Industry 2021/1/26 5:58:51
-
US Stock Index Futures Mixed Ahead of Corporate Giants Earnings; Microsoft Reports After the Close
WikiFX | Industry 2021/1/26 4:02:18
Singapore Dollar
- United Arab Emirates Dirham
- Australia Dollar
- Canadian Dollar
- Swiss Franc
- Chinese Yuan
- Danish Krone
- Euro
- British Pound
- Hong Kong Dollar
- Hungarian Forint
- Japanese Yen
- South Korean Won
- Mexican Peso
- Malaysian Ringgit
- Norwegian Krone
- New Zealand Dollar
- Polish Zloty
- Russian Ruble
- Saudi Arabian Riyal
- Swedish Krona
- Singapore Dollar
- Thai Baht
- Turkish Lira
- United States Dollar
- South African Rand

United States Dollar
- United Arab Emirates Dirham
- Australia Dollar
- Canadian Dollar
- Swiss Franc
- Chinese Yuan
- Danish Krone
- Euro
- British Pound
- Hong Kong Dollar
- Hungarian Forint
- Japanese Yen
- South Korean Won
- Mexican Peso
- Malaysian Ringgit
- Norwegian Krone
- New Zealand Dollar
- Polish Zloty
- Russian Ruble
- Saudi Arabian Riyal
- Swedish Krona
- Singapore Dollar
- Thai Baht
- Turkish Lira
- United States Dollar
- South African Rand
- Amount
- Singapore Dollar
- Available
- -- United States Dollar