HKEX Gold Futures Deliveries Smash Record Amid US Trade Restrictions
Hong Kong Exchanges and Clearing (HKEX) reported record-breaking physical deliveries of gold in its US dollar-denominated futures contract. On Wednesday, HKEX delivered 145kg (319.67lbs) of gold, more than doubling the previous record of 63kg (138.89lbs) set in December 2018.
The surge came after HKEX relaunched the contract on July 6, which is its 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, scheduled to run until June 30, 2027.
The record-breaking delivery highlights Hong Kong's ambition to become a global hub for the precious metal amid widening trade restrictions by the United States. Gold futures can help investors hedge price risk and gain leveraged exposure without holding physical metal, said Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers.