HKEX Gold Futures Trading Hits New Highs Amid Strong Demand
The Hong Kong Exchanges and Clearing (HKEX) has reported a surge in trading activity for its US dollar gold futures contract since its relaunch on July 6. The exchange stated that the contract has seen an average daily trading volume of 9,974 contracts, representing a notional value of around $1.35 billion.
This represents a significant increase in demand for the contract, which has attracted over 30 market participants to trade on it. On Wednesday, HKEX reported that 145 kilograms of gold were delivered physically under this contract, breaking the previous record of 63 kilograms set in December 2018.
The exchange attributed the high trading volumes and physical delivery of gold to the contract's popularity among investors looking for a secure store of value. This trend is expected to further solidify Hong Kong's position as an international gold trading hub, with more gold storage and delivery activities taking place in the city.