Core Viewpoint - The new chairman of the London Bullion Market Association, Peter Zoellner, calls for the UK to restart gold futures trading, despite previous unsuccessful attempts in establishing derivative contracts in this $35 trillion global physical gold trading center [1]. Group 1: Market Dynamics - The global gold market would benefit from having "two or three well-liquid trading centers" [1]. - Previous attempts to launch gold futures contracts in London were deemed premature, but the current market conditions may be more favorable [1]. - Concerns among market participants regarding trading on U.S. exchanges have increased due to uncertainties stemming from fluctuating tariff policies [1]. Group 2: Historical Context - The London Metal Exchange launched a gold futures contract in 2017, which was closed five years later due to low trading volumes [2]. - Earlier attempts at establishing a "London Gold Futures Market" from 1982 to 1985 also failed due to insufficient trading activity [2]. Group 3: Pricing and Transparency - The London Bullion Market Association plays a crucial role in determining which gold meets the "good delivery" standards for delivery to London member vaults [2]. - The association is considering whether to disclose more pricing data, including forward contracts and real-time price data, to enhance market transparency [2]. - The association has been collecting forward contract price data and has been publishing the "Gofo" gold forward rate curve for the past 12 years [2]. Group 4: Current Market Trends - Gold prices have surged by 57% this year, currently hovering around $4,100 per ounce [2]. - Central bank purchases of gold are expected to continue driving prices upward, with limited alternative options available [2]. - Concerns regarding government bond markets and trade wars are influencing factors in the gold market [2][3]. Group 5: Market Perception and Innovation - There is a growing concern over the fiscal policies of major economies, with public debt rising dramatically [3]. - The perception of political alliances, trade policies, and fiscal and monetary policies is shifting globally, which may lead to price volatility [3]. - The gold market is defended against claims of being outdated, emphasizing its focus on safety and credibility over convenience [3].