Gold fuels big banks’ bumper profits as oil bonanza fades

LONDON (Reuters) – Lower income from oil reduced commodity-related revenues at the world’s ten biggest investment banks in the third quarter, but booming profits from precious metals means they are still set for a bumper year, consultants McKinsey CIB Insights said on Monday. FILE PHOTO: Gold bars are displayed during a photo opportunity at the Ginza Tanaka store in Tokyo September 7, 2009. REUTERS/Yuriko Nakao/File Photo Big banks have almost doubled their earnings this year from trading, selling derivatives and other activities in the commodities sector thanks to price volatility, supply disruption and a boom in trading since the coronavirus outbreak.

Massive swings in the price of oil LCOc1 CLc1 , the biggest market, drove profits earlier in the year, but gold XAU= has taken over as the biggest earner as crude prices stabilised.

A rush of interest in gold from investors and a fracturing of the market after the virus […]

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