Spot gold experienced a brief surge to $4,000 per ounce on the afternoon of June 25th before retreating. It is currently trading at $3,982.718 per ounce, down by 0.23%. Concurrently, spot silver is priced at $57.206 per ounce, reflecting a decline of 0.29%.
Domestic gold jewelry prices have continued their downward trend. As of June 25th, the per-gram price for some brands has fallen by nearly 500 yuan from its peak at the beginning of the year, a drop exceeding 28%. Lao Feng Xiang is quoted at 1,215 yuan per gram, down 26 yuan from the previous day, marking a 498 yuan decline from the year's high. Chow Sang Sang is priced at 1,221 yuan per gram, down 19 yuan, representing a 487 yuan fall from the peak. Chow Tai Fook and Luk Fook are quoted at 1,222 yuan and 1,220 yuan per gram respectively, both down 16 yuan, with declines of approximately 478 yuan and 480 yuan from their year-to-date highs.
Bank Announcements on Service Termination
Following recent significant increases in margin requirements for personal precious metals deferred contracts by some banks, announcements have been made regarding the closure of these services.
China Construction Bank issued a notice on June 25th detailing upcoming arrangements for its agency business with the Shanghai Gold Exchange. The bank will cease its personal precious metals trading agency functions at the close of business on July 24th. The affected products include Au99.99, Au100g, PGC30g, Au, mAu, Ag, and others. Clients holding positions or physical inventory in these products are advised to promptly execute sell or close-out orders via the bank's mobile banking or online banking platforms.
On June 24th, Industrial and Commercial Bank of China announced the termination of its agency business for personal precious metals competitive trading on the Shanghai Gold Exchange, effective from the close of business on Friday, July 24, 2026. The impacted contract types include Au99.99, Au100g, Au99.95, PGC30g, Au(T+D), mAu(T+D), Ag(T+D), Au(T+N1), and Au(T+N2).
The notice advises existing clients with open positions to promptly sell, close positions, or take delivery of their holdings through available channels such as mobile banking, online banking, or branch counters. They should also withdraw any remaining funds from their margin accounts. For client accounts with no positions, inventory, or outstanding debts, the bank will subsequently process a bulk withdrawal of the remaining margin funds.
Background of the Widespread Suspension
This wave of service suspensions is not a new development. Reports from March indicated that since September 2025, at least 12 banks had issued notices adjusting their agency services for personal precious metals trading with the Shanghai Gold Exchange. These adjustments primarily involved the suspension or cessation of new position openings and buy transactions for related products.
Postal Savings Bank of China announced on February 11, 2026, the immediate halt of its agency business for personal precious metals trading on the Shanghai Gold Exchange. Clients were required to close their positions independently by March 13th, after which the bank would execute forced liquidations. China Guangfa Bank issued a notice on June 22nd, stating its intention to completely cease this business by the end of June. Clients were instructed to close their positions by June 25th, with the bank implementing forced liquidations before June 30th for non-compliant accounts.
According to information from various bank websites, the agency business for personal client precious metals trading involves banks, acting as financial members of the Shanghai Gold Exchange, executing buy/sell orders, clearing funds, and handling physical deliveries on behalf of individual clients within the exchange.
Expert Analysis on the Rationale
A chief economist commented that agency trading of Shanghai Gold Exchange precious metals for personal clients constitutes a leveraged derivatives business characterized by severe price volatility. Individual investors often lack sufficient risk tolerance, which can lead to significant losses.
The proactive exit by banks from servicing inactive 'triple-zero' clients—those with no positions, inventory, or debts—is a measure to fulfill investor suitability management obligations and avoid potential disputes. The expert noted that since July 2022, major banks have completely suspended new account openings for such businesses. The current adjustments represent the subsequent cleanup of existing client accounts, essentially marking the closure of this business channel for individual clients.
The expert further explained that international gold and silver prices are subject to intense fluctuations driven by geopolitical conflicts, US dollar policy, and inflation expectations. Individual investors typically lack professional risk management capabilities, making them vulnerable to forced liquidations or even losses exceeding their margin in extreme market conditions. As intermediary agents, banks find it difficult to completely avoid credit and reputational risks. The marginal cost of continuing to provide trading channels for a large number of inactive retail clients now far outweighs the benefits. The decision by banks to terminate this business is an adjustment based on comprehensive considerations including risk control, regulatory compliance, and investor protection in the current market environment.
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