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London Metal Exchange Abandons Attempt to Crack Gold Market

  • Bourse’s gold and silver futures expected to stop on July 11
  • Goldman Sachs and Morgan Stanley were among banks involved
Traders in the open outcry pit at the London Metal Exchange in London, U.K.

Traders in the open outcry pit at the London Metal Exchange in London, U.K.

Photographer: Jason Alden/Bloomberg
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The London Metal Exchange will abandon its attempt to break into precious-metal trading after just five years.

The LME -- the world’s biggest exchange for industrial metals -- partnered with banks including Goldman Sachs Group Inc and Morgan Stanley in 2017 to launch the contracts. London is one of the two major centers of precious-metals trading, where trillions of dollars in gold, silver and associated derivatives change hands each year. It’s an almost entirely over-the-counter business, dominated by top bullion banks like JPMorgan Chase & Co. and HSBC Holdings.