ICE launches precious metals futures in London this week

Intercontinental Exchange has begun trading precious metals futures in London, marking the introduction of gold, silver, platinum, and palladium derivatives linked to daily auction prices. The city, which handles over $190 billion in over-the-counter gold transactions daily and stores $1.4 trillion in bullion reserves, has not seen a successful futures market for gold in recent years.

The London Metal Exchange discontinued its gold futures contract in 2022 due to low trading volumes. Recent events, such as trade tensions and economic sanctions, have disrupted the global precious metals market. In April 2025, dealers transported significant quantities of gold to the United States as futures prices in New York surpassed physical prices in London.

ICE Futures Europe's president, Chris Rhodes, believes that derivatives could help manage risk in the physical market, especially if linked to the auction price. Central banks are reevaluating their gold storage locations, with the Dutch central bank recently transferring over 78 tonnes of gold from New York to London due to geopolitical concerns.

Gold prices reached a record high above $5,500 per troy ounce in January, with CME Group's gold futures contract in the U.S. generating around $125 billion in daily volume during the first half of the year. ICE's London contracts will settle against the physical auction prices they manage, with contract durations ranging from the same day to six months.