TOCOM October Volume Up 21.3%

The Tokyo Commodity Exchange announced on 5 November that average daily trading volume for October was 111,633 contracts, up 21.3% from September. TOCOM ’s core commodities saw significant increase in volume: Gold was up 14.7% to 45,460 contracts, Platinum was up 27.9 % to 25,094 contracts and Crude Oil was up 43.1% to 4,808 contracts. The average daily volume recovered to levels last seen in June 2013. Overall monthly trading volume also increased to the highest level since April 2013, at 2,455,916 contracts. Volume on October 31 was 179,282 contracts, the highest this year.

TOCOM Gold prices remained volatile throughout the month. A four month low of 4,176 yen per gram was reached on October 6 on improving U.S. economic indicators and expectations for higher interest rates. Prices fluctuated following a rise in U.S. stock prices and growing demand for physical gold, as well as the buying of gold as safe-haven asset in a slowing economy.

Crude Oil prices dropped to a nearly 2 year low of 54,750 yen per kiloliter on October 17 as production expanded and concerns grew of lower demand in Europe and China. Prices bounced back when expectations for demand stabilized, U.S. equities rose and the Yen weakened. Open interest at the end of October 2014 for all listed products totaled 341,340 contracts, a decrease of 37,285 (-9.85%) from the end of September.