Name: Canada's CIBC lost $64 million in a day on paper in gold market turmoil
Brand: reuters.com
SKU: reuters-com-1405
Availability: OnlineOnly

critic

Canada's CIBC lost $64 million in a day on paper in gold market turmoil

preview

By LONDON (Reuters) - 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 in its second-quarter earnings report on Thursday.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.Reporting by Peter Hobson; Editing by Dan Grebler and Grant McCoolOur Standards:

By LONDON (Reuters) - 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 in its second-quarter earnings report on Thursday.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...

public

Peter Hobson

Top and breaking news, pictures and videos from Reuters. For more breaking business news, follow @ReutersBiz.

reuters.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Canada's CIBC lost $64 million in a day on paper in gold market turmoil

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS