Saturday, July 11, 2020

HSBC loses $ 200 million in just one day

Must read

Mujdat finally absent from Marseille vs the rest of the World 5 to find Milla Jasmine? This video sows doubt

A new candidate about to integrate the shooting of Marseillais vs the rest of World 5, we know her identity! For her part,...

Jack Charlton dies, world champion with England in 1966

Jack Charlton, a member of the English soccer team that won the 1966 World Cup, died on Friday at the age of 85, his...

Milinkovic e Lukaku dal 1 ‘

Almost everything is ready at the Olympic stadium for today's match between Lazio e Sassulo. Inzaghi's team wants to return to winning after...

Turkey passes a law that would affect the independence of lawyers

The pTurkey's Parliament has approved this Saturday a new and controversial law that will allow the creation of new bar associations allied across...
HSBC headquarters in London

The British bank had to cope with significant losses in the gold market.

(Photo: AFP)

London The UK’s major bank HSBC lost around $ 200 million in the gold market in just one day in March, the amount the bank and other large gold market players typically earn in the segment throughout the year. Due to the losses quantified on Wednesday, there were dramatic price divergences between important gold trading centers.

The corona crisis had led to production interruptions at the gold refineries at the end of March and also severely restricted the transportation of precious metals. The result was distortions in the market. Price differences of typically a few dollars between futures trading in New York and the London cash market escalated to up to $ 70. There has not been such a large price spread in four decades.

HSBC already reported the existence of the gold market problem in March. The extent of the damage reported is new. It even exceeds the maximum losses that were possible according to the bank’s risk models – and by far.

The bank described the loss as “a loss in market value mainly related to difficulties in gold refining and transportation”. An unprecedented widening of the spread on physical gold has weighed on gold leasing and ingot financing business and has also put pressure on other gold hedging activities.

HSBC declined to comment on the Bloomberg information service. Last week, the difference between ounce prices in New York and London dropped to more normal levels below $ 5.

More: Europe’s largest money house is planning an austerity program

.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest article

Mujdat finally absent from Marseille vs the rest of the World 5 to find Milla Jasmine? This video sows doubt

A new candidate about to integrate the shooting of Marseillais vs the rest of World 5, we know her identity! For her part,...

Jack Charlton dies, world champion with England in 1966

Jack Charlton, a member of the English soccer team that won the 1966 World Cup, died on Friday at the age of 85, his...

Milinkovic e Lukaku dal 1 ‘

Almost everything is ready at the Olympic stadium for today's match between Lazio e Sassulo. Inzaghi's team wants to return to winning after...

Turkey passes a law that would affect the independence of lawyers

The pTurkey's Parliament has approved this Saturday a new and controversial law that will allow the creation of new bar associations allied across...

Live Formula 1: what can Max Verstappen do in qualifying? | Motorsport

Max Verstappen in action on the Red Bull Ring.Ⓒ AFPThe qualification for the Steiermark Grand Prix has started with some delay due to...