HKEX gold futures smash delivery record as US sanctions reshape trade

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.

Average daily trading volume reached 9,974 contracts between July 6 and August 19, with total trading value hitting US$1.35 billion. More than 30 market participants had engaged with the contract since its relaunch, according to the exchange’s statement published on Wednesday.

Gold prices rose after the US Treasury announced on the same day that it would at least double the size of its liquidity-support buy-back operations for long-dated bonds. The precious metal traded at about US$4,540 per ounce on Friday.