{"id":45451,"date":"2025-01-16T15:15:30","date_gmt":"2025-01-16T15:15:30","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/why-is-societe-generale-making-a-comeback-to-gold-trading\/"},"modified":"2025-01-16T15:15:30","modified_gmt":"2025-01-16T15:15:30","slug":"why-is-societe-generale-making-a-comeback-to-gold-trading","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/why-is-societe-generale-making-a-comeback-to-gold-trading\/","title":{"rendered":"Why is Societe Generale making a comeback to gold trading?"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
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Societe Generale, the third-largest listed bank in France, is reportedly planning a partial return to gold trading<\/a>.\u00a0<\/p>\n

This strategic move comes after the bank’s exit from the bullion market in 2019. Two sources familiar with the matter revealed this information to Reuters.<\/p>\n

The bank’s departure from gold trading in 2019 was part of a broader downsizing of its over-the-counter (OTC) commodities trading operations. <\/p>\n

In OTC trading, deals are conducted directly between banks and brokers, without the involvement of a centralized exchange. <\/p>\n

Reasons behind Societe Generale’s decision remain unclear<\/h2>\n

As part of this downsizing, Societe Generale also resigned from its position as a market maker for gold at the London Bullion Market Association (LBMA).\u00a0<\/p>\n

Market makers play a crucial role in ensuring liquidity and efficient price discovery in the market by continuously quoting buy and sell gold prices.<\/p>\n

The reasons behind Societe Generale’s decision to re-enter the gold trading market remain unclear. <\/p>\n

However, this move could be driven by a variety of factors, including a more favorable market environment, increased client demand for gold-related products, or a strategic shift in the bank’s overall business model. <\/p>\n

The potential benefits of re-entering the gold market could include increased revenue streams, diversification of the bank’s product offerings, and enhanced client relationships.<\/p>\n

Narrowed focus on precious metals trading<\/h2>\n

The bank has made a strategic decision to narrow its focus in the realm of precious metals trading. <\/p>\n

The sources revealed to Reuters that the bank intends to concentrate its efforts solely on the trading of gold derivatives. <\/p>\n

This targeted approach suggests a deliberate move away from broader involvement in the gold market. <\/p>\n

Furthermore, the sources indicated that the bank does not have any immediate plans to expand its workforce significantly or to re-establish its position as a market maker within the LBMA. <\/p>\n

Content with its current operational capacity <\/h2>\n

This decision implies that the bank is content with its current operational capacity and does not envision a need to become a major player in the LBMA market again.<\/p>\n

It is important to note that London holds a prominent position in the global gold market, serving as the world’s largest OTC gold trading hub. <\/p>\n

The LBMA plays a crucial role in overseeing and regulating this market. By choosing to focus on gold derivatives trading in London, the bank is strategically positioning itself within this significant financial center.<\/p>\n

After a nine-year absence, Japan’s trading house Mitsui & Co. also intends to re-enter global precious metals trading to hedge client risk following the 2024 bullion rally which boosted activity in the sector.\u00a0<\/p>\n

Societe Generale’s return to the sector follows this trend.<\/p>\n

Gold price surge in 2024<\/h2>\n

Gold prices on COMEX had surged 27% in 2024 on the back of interest rate cuts by the US Federal Reserve and geopolitical tensions. <\/p>\n

In October last year, gold had hit a series of record highs after Israel and Iran were involved in military strikes. <\/p>\n

Rising geopolitical tensions in the ongoing Russia-Ukraine war also contributed to the increased safe-haven demand for gold last year.\u00a0<\/p>\n

The World Gold Council had earlier estimated that trading volumes in the yellow metal across global markets surged by 39% to an average of $226.3 billion per day last year. This is the highest level on record. <\/p>\n

The post Why is Societe Generale making a comeback to gold trading?<\/a> appeared first on Invezz<\/a><\/p>\n

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(Originally posted on : Invezz ) Societe Generale, the third-largest listed bank in France, is reportedly planning a partial return to gold trading.\u00a0 This strategic move comes after the bank’s exit from the bullion market in 2019. Two sources familiar with the matter revealed this information to Reuters. The bank’s departure from gold trading in […]<\/p>\n","protected":false},"author":3947362381,"featured_media":45452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[37],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/45451"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362381"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=45451"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/45451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/45452"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=45451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=45451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=45451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}