Published on 6/25/2026
Major Chinese banks have begun tightening restrictions on the trading of gold and precious metals for individuals, in the latest step to contain risks after the end of a historic rise that pushed the prices of the precious metal to record levels before they reversed sharply in recent months, according to Bloomberg.
The Industrial and Commercial Bank of China, the largest bank in the world by assets, announced that it will stop, as of July 24, brokerage services that allow individuals to trade precious metals on the Shanghai Gold Exchange.
The bank called on current customers to sell or close their positions before the decision takes effect, that is, to end current deals by converting the quantities of gold they purchased and still hold into cash.
China Guangfa Bank also asked its clients to close their positions in precious metals before the end of June, warning of the forced liquidation of remaining positions (terminating open trades) at the end of the month.
The bank explained that the decision does not include savings products linked to gold or traded funds that invest in precious metals.
Bloomberg reported that these measures represent one of the latest episodes of tightening implemented by Chinese banks to limit the trading of individual investors in gold, after several banks, including the Industrial and Commercial Bank of China, had suspended since 2022 the opening of new positions for individuals on the main contracts on the Shanghai Gold Exchange, while maintaining the possibility of closing existing positions.
Declining prices reinforce caution
These steps come after a reversal of the upward trend that dominated the gold market over the past two years, as the spot price fell this week below the level of $4,000 per ounce, continuing its distance from its record level of about $5,600 that it recorded last January.
Bloomberg indicated that the wave of rise during which gold prices doubled during the previous two years lost its momentum after the outbreak of the US-Iranian war, which strengthened inflationary fears and established expectations for the continuation of interest rates at high levels, which reduced the attractiveness of gold compared to return-generating assets.
Song Jiangchen, a researcher at the Guangdong South Gold Market Academy, said that the decision will not have a major impact on the market, because banks had already prevented individual investors from opening new positions for years, and their activity was limited to liquidating existing positions.
Risk management, not a complete ban
Chinese banks justified their decisions with risk management considerations, whether for immediate or deferred delivery contracts, in light of the sharp fluctuations witnessed in precious metal prices during the recent period.
This comes after similar steps taken earlier this year by the China Postal Savings Bank and Ping An Bank, as part of a broader policy to tighten controls on individuals’ investments in precious metals.
Despite these restrictions, individual investors can still trade in gold through brokerage companies through the Shanghai Futures Exchange, and they can also invest in cumulative gold savings programs offered by commercial banks, which are based on purchasing the metal gradually over the long term.
These measures reflect an increasing trend among Chinese authorities and financial institutions towards reducing short-term speculation in the gold market, while directing individual investors to investment tools that are less volatile and more suitable for long-term investment, according to Bloomberg.
