HKEX gold futures smash delivery record as US sanctions reshape trade
The milestone more than doubles the previous peak recorded in 2018
The bourse operator physically delivered 145kg (319.67lbs) of gold, the highest single-day tally since the product was first launched in 2018, according to a statement published on HKEX’s official WeChat account.
The figure for Wednesday more than doubled the previous record of 63kg (138.89lbs) set in December 2018.
The surge came after HKEX relaunched the contract on July 6 – the exchange’s fourth attempt since the 1980s to establish a viable gold futures market. To boost liquidity, it introduced a marketwide waiver of its US$1-per-contract trading fee, which is scheduled to run until June 30, 2027.
“Gold futures can help to hedge price risk for investors and leveraged exposure without holding physical metal,” said Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers.
Physical gold bar delivery is handled in Hong Kong through HKEX’s approved depository, currently Brink’s Hong Kong, he noted. On final settlement, ownership of the gold moves from the seller’s vault account to the buyer, settling the contract in US dollars.