Canadian Imperial Bank of Commerce (TSX:CM) took a trading loss of $88.2 million in one day in March due to volatility in the gold market, the bank said in its second-quarter earnings report.
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 that it suffered losses of about $200 million on one day in March due to turmoil in gold markets.
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, its report showed.
Several banks have said they plan to reduce their gold future positions significantly on CME Group’s Comex exchange in New York because they fear further price volatility.
