HKEX gold futures smash delivery record as US sanctions reshape trade

Fri Aug 21 2026

Hong Kong Exchanges and Clearing (HKEX) has reported record-breaking physical deliveries and a trading surge in its US dollar-denominated gold futures contract, underscoring the city’s ambition to become a global hub for the precious metal amid widening trade restrictions by the United States.

The bourse operator physically delivered 145kg (319.67lbs) of gold, the highest single-day tally since the product was first launched in 2018, according to a statement published on HKEX’s official WeChat account.

The figure for Wednesday more than doubled the previous record of 63kg (138.89lbs) set in December 2018.

The surge came 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.

“Gold futures can help to hedge price risk for investors and leveraged exposure without holding physical metal,” said Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers.

Physical gold bar delivery is handled in Hong Kong through HKEX’s approved depository, currently Brink’s Hong Kong, he noted. On final settlement, ownership of the gold moves from the seller’s vault account to the buyer, settling the contract in US dollars.

Average daily trading volume reached 9,974 contracts between July 6 and August 19, with total trading value hitting US$1.35 billion. More than 30 market participants had engaged with the contract since its relaunch, according to the exchange’s statement published on Wednesday.

Gold prices rose after the US Treasury announced on the same day that it would at least double the size of its liquidity-support buy-back operations for long-dated bonds. The precious metal traded at about US$4,540 per ounce on Friday.

The HKEX milestone coincides with broader efforts to strengthen Hong Kong’s bullion ecosystem. On July 7, the city launched a trial of a centralised gold clearing and settlement system.

The measures also include Delivery Connect in partnership with the Shanghai Gold Exchange, which allows market participants to deposit physical gold holdings into a designated vault managed by the Shanghai Gold Exchange’s International Board in Hong Kong.

Separately, in late July the US Department of Homeland Security added dozens of Chinese companies to its trade blacklist, barring goods produced by those firms from entering the American market. Among the newly designated firms are three tied to China’s gold sector: Shandong Gold Mining, its subsidiary Shandong Gold Smelting Co and Xinjiang Jinchuan Mining.

Following Washington’s move, the London Bullion Market Association suspended the qualified delivery status of the targeted gold companies.

On Wednesday, the China Gold Association said the measures “lack any factual basis, violate market-oriented principles and disrupt the stability of the global gold industry chain”.

Source: https://www.scmp.com