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New York Gold Traders Drown in a Glut They Helped Create

  • About 17 million ounces of gold arrived since end-March
  • Supply flows in from refineries in Switzerland and Australia
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The New York gold market has been flipped on its head in just a couple of months, with a scramble for the metal turning into a glut.

Earlier this year, traders who had sold contracts paid a steep premium to close positions after the coronavirus pandemic grounded flights, sparking worries about the ability to get gold to New York. That drove futures to the highest premium to the spot price in four decades, attracting a flood of metal to the U.S. from around the world. Now, contract holders are trying to avoid taking delivery from the massive inventory.