Due to the cooling problem at the CyrusOne data center, our markets are currently on hold. The support department is working to fix it as soon as possible and will notify customers about the opening time before the trading session as soon as possible" - CME Group said in the official announcement.
After the longest technical problem in recent years, CME said all future contract trading activities, including gold and silver, were restored right before the North American trading session.
Despite the overnight disruption, over-the-counter (OTC) markets still showed strong demand for the precious metal.
CME is the largest trading floor operator by market value. Although the incident has somewhat affected gold and silver trading, these two metals are also traded in the decentralized market, where prices continue to rise overnight.
The gold market recorded strong buying momentum this week, with spot prices surpassing the resistance zone of 4,200 USD/ounce at night.
Meanwhile, silver once again tested the resistance zone just below $54/ounce. The last spot silver price recorded at 53.87 USD/ounce, up nearly 8% since the beginning of the week.
Some analysts said that although the CME incident disrupted the market, the overall impact was still limited due to thin trading activities during the holiday. The US market closed on Thursday for Thanksgiving and on Friday it was only open for half a day.
Its been a long time since weve seen such a long-term incident. Fortunately, it fell on a relatively quiet trading day, when many US investors enjoyed a long Thanksgiving holiday," Ole Hansen - Head of Commodity Strategy at Saxo Bank, commented on social media.
The time of the incident also angered those who follow the precious metals plot theories, and they posted many comments on social media. The incident occurred right when silver prices were moving to new highs above $54/ounce.
The strong demand for silver continues to put pressure on the physical market, which is in a state of a prolonged supply deficit.
Hansen dismisses most of the controlling plot theories.
People who follow the silver plot theory are freely imagining, saying that CMEGroup was afraid of a thin order book, so they turned off the entire platform to prevent a price break. To be honest, that is meaningless. And before the comments explode like a Christmas tree, please note that I have been optimistic about silver since 2022 and expect prices to increase further in the coming months," he said.
The world gold market operates through two main valuation mechanisms. The first is the spot delivery market, where prices are quoted for transactions and spot deliveries.
Second is the futures contract market, which sets prices for future deliveries. Due to year-end book-taking activities, December gold contracts are currently the most actively traded on CME.
See more news related to gold prices HERE...
