BoA commodity trading jumps 60% on oil and gold volatility

Bank of America Corp reported a sharp rise in commodities trading revenue in the first quarter, with gains driven by heightened volatility in oil and precious metals markets that boosted performance across its trading businesses, according to a report by Bloomberg.

The bank said commodities trading revenue increased by around 60% year-on-year, reflecting unusually strong client activity amid rapid price swings. Senior executives attributed much of the strength to energy and gold markets, which experienced frequent moves driven by geopolitical developments and shifting macro expectations.

Co-heads of global markets Denis Manelski and Soofian Zuberi said trading conditions in those asset classes were particularly active throughout the period. They noted that headline-driven price action created sustained opportunities for client flows and market-making activity.

Oil markets remained highly volatile following military developments involving the US, Israel, and Iran earlier in the year, which disrupted shipping routes through the Strait of Hormuz and caused damage to key energy infrastructure across the Middle East. These supply concerns contributed to sharp price fluctuations in crude throughout the quarter.

Precious metals also saw significant turbulence. Gold reached record levels above $5,400 an ounce before experiencing a sharp correction in late January, followed by further swings as geopolitical tensions escalated. Despite the volatility, gold finished the quarter up just over 8%, underscoring the scale of intra-period moves.

Beyond commodities, Bank of America also reported strength across other parts of its markets business. International trading revenue rose 23% year-on-year, accounting for a significant share of overall sales and trading activity. Executives highlighted particularly strong performance in Asia-Pacific equities and a record quarter for the bank’s prime brokerage operations.

Equities trading revenue increased by roughly 30% in the first three months of the year, supported by higher client engagement, financing activity, and stronger derivatives trading. Management attributed the improvement to increased capital deployment into trading businesses and robust demand from institutional clients.

Chief Financial Officer Alastair Borthwick said client activity was especially strong in Asia, where demand for financing and derivatives strategies contributed to performance gains.

More broadly, markets have continued to be shaped by elevated volatility stemming from geopolitical tensions, global trade policy uncertainty, and shifts in investor positioning across asset classes. These conditions have benefited major Wall Street trading divisions, including Bank of America’s, which has now recorded multiple consecutive quarters of year-over-year growth in its markets segment.

Executives said the firm has continued investing in its trading platform through increased capital allocation, hiring, and expansion in key regions to keep pace with industry peers and rising client demand.

The bank said commodities trading revenue increased by around 60% year-on-year, reflecting unusually strong client activity amid rapid price swings. Senior executives attributed much of the strength to energy and gold markets, which experienced frequent moves driven by geopolitical developments and shifting macro expectations.

Co-heads of global markets Denis Manelski and Soofian Zuberi said trading conditions in those asset classes were particularly active throughout the period. They noted that headline-driven price action created sustained opportunities for client flows and market-making activity.

Oil markets remained highly volatile following military developments involving the US, Israel, and Iran earlier in the year, which disrupted shipping routes through the Strait of Hormuz and caused damage to key energy infrastructure across the Middle East. These supply concerns contributed to sharp price fluctuations in crude throughout the quarter.

Precious metals also saw significant turbulence. Gold reached record levels above $5,400 an ounce before experiencing a sharp correction in late January, followed by further swings as geopolitical tensions escalated. Despite the volatility, gold finished the quarter up just over 8%, underscoring the scale of intra-period moves.

Beyond commodities, Bank of America also reported strength across other parts of its markets business. International trading revenue rose 23% year-on-year, accounting for a significant share of overall sales and trading activity. Executives highlighted particularly strong performance in Asia-Pacific equities and a record quarter for the bank’s prime brokerage operations.

Equities trading revenue increased by roughly 30% in the first three months of the year, supported by higher client engagement, financing activity, and stronger derivatives trading. Management attributed the improvement to increased capital deployment into trading businesses and robust demand from institutional clients.

Chief Financial Officer Alastair Borthwick said client activity was especially strong in Asia, where demand for financing and derivatives strategies contributed to performance gains.

More broadly, markets have continued to be shaped by elevated volatility stemming from geopolitical tensions, global trade policy uncertainty, and shifts in investor positioning across asset classes. These conditions have benefited major Wall Street trading divisions, including Bank of America’s, which has now recorded multiple consecutive quarters of year-over-year growth in its markets segment.

Executives said the firm has continued investing in its trading platform through increased capital allocation, hiring, and expansion in key regions to keep pace with industry peers and rising client demand.