Avg daily trading volumes of gold touched $227 billion in 2024
Chennai: Gold's global trading volumes averaged around $227 billion per day in 2024, growing by 39 per cent over the average volumes in 2023. Among leading risk assets, yellow metal provided the highest annualised return last year and in the past three years, finds the World Gold Council. In 2024, the average daily trading volumes of gold across spot and derivatives contracts, gold futures and gold-backed ETFs stood at $227 billion. Of this, over-the-counter spot and derivatives contracts accounted for 60.8 per cent at $138 billion. Gold futures had a share of 38.1 per cent with average trading value of $86.5 billion. Gold-backed ETFs, the smallest asset class, had a share of 1.2 per cent and value of $2.6 billion. The increase in gold prices in 2024 and the increased participation saw the average daily trading volumes grow by 39 per cent over 2023. In 2023, gold’s trading volumes averaged around $163 billion per day. During that period, OTC spot and derivatives contracts accounted for $99 billion and gold futures traded $62 billion per day across various global exchanges. Physically-backed gold ETFs (gold ETFs) traded an average of $2 billion per day. Further, physical gold holdings by investors and central banks are worth approximately $5.1 trillion, with an additional $1 trillion in open interest through derivatives traded on exchanges or the over-the-counter (OTC) market. This scale and depth of the market has helped gold comfortably accommodate large, buy-and-hold institutional investors. In stark contrast to many financial markets, gold’s liquidity does not dry up, even at times of financial stress. Importantly too, gold allows investors to meet liabilities when less liquid assets in their portfolio are difficult to sell, or are mispriced. Moreover, since the US gold standard collapsed in 1971, the price of gold in US dollars has increased by 8 per cent on an annualised basis – a performance comparable with that of equities and higher than that of bonds over the same period. However, last year gold outperformed the risky assets including US stocks, US cash, global stocks, commodities, Emerging Market stocks and US treasuries. Gold’s annualised return for the past three years was higher than all these asset classes. In the last 5-year period and 20-year period, gold’s return was second highest after US stocks. Since the US gold standard collapsed in 1971, the price of gold in US dollars has increased by 8 per cent on an annualised basis – a performance comparable with that of equities and higher than that of bonds over the same period.
Chennai: Gold's global trading volumes averaged around $227 billion per day in 2024, growing by 39 per cent over the average volumes in 2023. Among leading risk assets, yellow metal provided the highest annualised return last year and in the past three years, finds the World Gold Council.
In 2024, the average daily trading volumes of gold across spot and derivatives contracts, gold futures and gold-backed ETFs stood at $227 billion. Of this, over-the-counter spot and derivatives contracts accounted for 60.8 per cent at $138 billion. Gold futures had a share of 38.1 per cent with average trading value of $86.5 billion. Gold-backed ETFs, the smallest asset class, had a share of 1.2 per cent and value of $2.6 billion.
The increase in gold prices in 2024 and the increased participation saw the average daily trading volumes grow by 39 per cent over 2023.
In 2023, gold’s trading volumes averaged around $163 billion per day. During that period, OTC spot and derivatives contracts accounted for $99 billion and gold futures traded $62 billion per day across various global exchanges. Physically-backed gold ETFs (gold ETFs) traded an average of $2 billion per day.
Further, physical gold holdings by investors and central banks are worth approximately $5.1 trillion, with an additional $1 trillion in open interest through derivatives traded on exchanges or the over-the-counter (OTC) market.
This scale and depth of the market has helped gold comfortably accommodate large, buy-and-hold institutional investors. In stark contrast to many financial markets, gold’s liquidity does not dry up, even at times of financial stress. Importantly too, gold allows investors to meet liabilities when less liquid assets in their portfolio are difficult to sell, or are mispriced.
Moreover, since the US gold standard collapsed in 1971, the price of gold in US dollars has increased by 8 per cent on an annualised basis – a performance comparable with that of equities and higher than that of bonds over the same period.
However, last year gold outperformed the risky assets including US stocks, US cash, global stocks, commodities, Emerging Market stocks and US treasuries. Gold’s annualised return for the past three years was higher than all these asset classes. In the last 5-year period and 20-year period, gold’s return was second highest after US stocks.
Since the US gold standard collapsed in 1971, the price of gold in US dollars has increased by 8 per cent on an annualised basis – a performance comparable with that of equities and higher than that of bonds over the same period.
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