HKEX Records Record Gold Deliveries Amid Growing Asian Influence

Hong Kong Exchanges and Clearing (HKEX) has reported record physical gold deliveries of 145kg linked to its dollar-denominated gold futures contract. This milestone underscores Hong Kong's growing role as a gold hub, challenging Western dominance in the market.

The highest single-day delivery since the contract was launched in 2018 occurred on August 19. HKEX waived trading fees and implemented incentive programs for liquidity providers to revitalize the contract. The move had an almost immediate impact, with the August contract trading 4,286 contracts on July 6, compared to zero the day before.

The average daily trading volume reached 9,974 contracts between July 6 and August 19, while total trading value hit $1.35 billion. HKEX intentionally implemented rules for its dollar-denominated futures contract to encourage physical delivery of metal.