Gold Prices Slump: CME Raises Margins, Goldman Trader Leaves, and China's Zijin Makes Major Acquisition

EXCERPT: In a week marked by significant shifts in the precious metals market, CME Group raised margins on Comex gold and silver futures following historic price plunges. Goldman Sachs' top precious metals trader, Benjamin Binet-Laisne, announced his departure from the bank. Meanwhile, China's Zijin Mining Group agreed to buy Allied Gold for C$5.5 billion.

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The precious metals market experienced a tumultuous week, with gold and silver prices suffering their biggest slides in decades. In response, the Chicago Mercantile Exchange (CME) Group announced it would raise margins on Comex gold and silver futures to help protect against potential losses. This move came after gold prices dropped by more than 10% in just a few days, while silver prices plunged by over 15%.

Amid this volatility, one of the industry's most prominent figures, Benjamin Binet-Laisne, the head of precious metals trading at Goldman Sachs Group Inc., announced his departure from the bank. According to people familiar with the matter, Binet-Laisne's exit is effective immediately. His departure follows a series of high-profile departures from the bank's commodities division, which has been undergoing significant restructuring in recent months.

Meanwhile, in a major acquisition, China's Zijin Mining Group announced it would buy Allied Gold Corp. for C$5.5 billion. Allied Gold operates gold mines in Africa, making it an attractive target for the Chinese mining giant. The deal is expected to close in the second half of 2021, subject to regulatory approvals.

Elsewhere, Wizz Air Holdings Plc applied for permission to fly to the US, months after the budget carrier's plans to expand in the Middle East fell through. The UK subsidiary's application comes as South African stocks hit a fresh record high, with investors expecting the rally to run further. Surging metal prices and a strengthening rand have helped propel the benchmark stock index to new heights.

In other news, electrical equipment maker Forgent Power Solutions Inc. is seeking to raise as much as $1.62 billion in its initial public offering. Ryanair Holdings Plc said it will consider installing in-flight Wi-Fi across its fleet only once costs drop and the product makes sense for budget-minded passengers on short hops across Europe.

As the week drew to a close, Hong Kong announced it would double the supply of yuan available for banks to borrow, in the latest step to meet growing demand and help China boost the global use of its currency. Copper extended gains, with continued weakness in the dollar buoying base metals.

In the UK, the country braced for severe wind and rain as Storm Chandra was named, marking the third major storm to hit the country this month. Protests against Immigration and Customs Enforcement (ICE) continued in Minneapolis, with Governor Tim Walz urging Trump to remove agents.

In Antigua, producers are hoping that increasing liberalisation will lead to higher revenues. The Caribbean island is pushing for more liberal cannabis laws, following in the footsteps of Jamaica. Elsewhere, Europe's bank rules overhaul should look beyond Additional Tier 1 (AT1) capital, according to a top watchdog.

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