On September 24, 2024, the Office of the Comptroller of the Currency released its Quarterly Report on Bank Trading Activity and Derivatives Activities. Figure 18 on PDF page 42 shows precious metals derivative contracts held by Insured U.S. Commercial Banks and Savings Associations. The banks continue to move into precious metals contracts.
Note that beginning January 1, 2022 the largest banks were required to calculate their derivative exposure amount for regulatory capital purposes using the Standardized Approach for Counterparty Credit Risk (SA-CCR). Gold derivatives were considered precious metals derivative contracts rather than an exchange rate derivative contract, resulting in an increase in reported precious metals derivative contracts compared.
Note that this information is for educational purposes only and not a recommendation.
