HKEX Gold Futures Deliver Record Amount Amid US Trade Restrictions

Hong Kong Exchanges and Clearing (HKEX) has set a new record for physical deliveries in its US dollar-denominated gold futures contract. The bourse operator delivered 145kg of gold on Wednesday, more than doubling the previous record of 63kg set in December 2018.

The surge in delivery comes 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.

Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers, noted that 'gold futures can help to hedge price risk for investors and leveraged exposure without holding physical metal.' Physical gold bar delivery is handled in Hong Kong through HKEX's approved depository, currently Brink's Hong Kong.