LBMA Chair Advocates Revitalization of UK Gold Futures Market

According to PANews, Peter Zoellner, the newly appointed chairman of the London Bullion Market Association (LBMA), has called for a revival of the UK's gold futures trading. Despite previous unsuccessful attempts to establish derivative contracts within the $35 trillion global physical gold trading market, Zoellner believes that the timing of the initial launch of gold futures contracts in London was premature. He emphasized that having 'two or three well-liquid places' would benefit the global gold market. Zoellner noted that any decision regarding the development and listing of such products would ultimately rest with the exchanges. Currently, gold trading in London is primarily conducted through bilateral 'over-the-counter' physical transactions, lacking a robust gold futures market. The London Metal Exchange (LME) introduced a gold futures contract in 2017, but it was discontinued five years later due to insufficient trading volume.