Canadian Imperial Bank of Commerce (CIBC) took a mark-to-market trading loss of C$88.2 million ($64 million) in one day in March due mainly to volatility in the gold market, the bank said, Trend reports citing Reuters.
CIBC is not alone in being caught out when the coronavirus outbreak interrupted gold supply routes and gold futures prices in New York shot above London spot prices.
HSBC said earlier this month it suffered paper losses of about $200 million on one day in March.
The losses by both banks are theoretical, reflecting the value of positions they held. They would become real only if the bank exited the positions when their value was low.
CIBC said the loss happened on March 24 and was “mostly attributable to our precious metals trading business”.
It was by far the biggest trading loss of any day since May last year, its report showed. CIBC said it was mostly recouped in April.
Gold trading banks plan to reduce their gold futures positions significantly on CME Group’s Comex exchange in New York because they fear further price volatility, Reuters reported on Thursday.
A reduction of activity by banks on Comex, the world’s largest gold futures market, would increase the relative importance of London as a trading centre and raise costs for thousands of gold investors who use the exchange.
See all the news
Turkey to open doors to 31 countries for health tourism
Statement by Andrius Kubilius on the EU assistance for Georgia
Wine sales have increased 5 times in the UK - Georgian-British startup
S&P: Georgia Heads Toward Recession
Coronavirus: Boris Johnson moved to intensive care
First-Stage Land Usage Permit for APM Terminals Poti
How will Nenskra HPP Reduce the Electricity Import?
Carrefour: The product will be on the shelves with the prices same as before
Differences between tobacco and nicotine products
OECD cuts 2020 global growth forecast over virus
Georgia to export new armored vehicle Didgori Meomari
"Hotels are in shock, reservations are canceled" - Shalva Alaverdashvili
Georgian brand Entrée enters the UK market and opens its first facility in London
The first Swiss-Georgian VET college will soon be open in Dmanisi
Frontera claims that Georgian government has started harassing the company since 2013
Company HotelFriend offers convenient eComerce platform to Georgian Touroperators
Will the head of "Anaklia Deepwater Port Development Agency" be replaced?
TOP-10 Exporter Companies from Georgia to Russia
TBC Bank Group announces certain changes to the composition of the Management Board
Silknet signed Memorandum of Understanding with Global Communications Company One Web