Gold prices experience short-term high volatility as banks shift risk control strategies toward dynamic adjustments

Securities Times Reporter Huang Yulin

On March 25, the spot gold price continued its recent high volatility trend, briefly breaking the $4,600 per ounce mark during the day.

Looking back at the market on March 23, the spot gold price repeatedly fell below the key levels of $4,500, $4,400, $4,300, $4,200, and $4,100 per ounce, dropping below $4,100 per ounce for the first time since November 2025, with a daily decline of up to 9.75%, erasing all gains made this year.

In response to the short-term accumulation of volatility risks in the precious metals market, domestic banks have quickly responded with risk control measures. According to a review by Securities Times reporters, this week, state-owned banks such as Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and Bank of Communications, as well as joint-stock banks like China Minsheng Bank and China Merchants Bank, have issued multiple announcements to remind investors of the market risks associated with precious metals business.

The related announcements stated that there has been significant volatility in domestic and international precious metal prices recently, with uncertainty factors notably increasing, leading to heightened market risks. It specifically reminded all customers to fully and prudently assess their risk tolerance, to comprehensively consider their financial situation, and to conduct precious metal trading business cautiously while maintaining a rational investment mindset. Additionally, close attention should be paid to market changes, and effective measures should be taken to control the scale of positions to guard against market volatility risks.

In addition to issuing risk warning announcements, several banks have also begun adjusting trading rules for accumulated gold and other precious metal businesses. Among them, China Construction Bank and Industrial and Commercial Bank of China stated that, under certain conditions, they will implement limit management on the purchase of accumulated gold to control the total volume of precious metal trading; China Merchants Bank and Jiangsu Bank have started to adjust trading fees, increasing the costs of short-term transactions.

Industry insiders pointed out that these measures reflect the banks’ proactive adjustment of their risk control approach for precious metals business from a previous “static defense” to a “dynamic adjustment,” guiding investors toward reasonable long-term asset allocation.

For example, China Merchants Bank has adjusted the buying and selling transaction spread for gold account business at the same quotation point to 5 yuan per gram, increasing the buying spread by 2 yuan per gram while keeping the selling spread unchanged. The revised spread scheme is expected to be in effect until June 27; starting from the market opening on June 29, the buying and selling spreads for the same quotation point in the gold account business will be adjusted to 2.5 yuan per gram.

Jiangsu Bank will adjust its fee schedule for gold accumulation business starting January 1, 2026. For gold accumulation purchases, redemptions, and exchanges for physical gold at the bank, the base fee standard will be 1.5 yuan per gram; a promotional price of 1.2 yuan per gram will be implemented from January 1 to March 31, 2026 (compared to 1 yuan per gram in 2025); and a promotional price of 1.4 yuan per gram will be implemented from April 1 to December 31, 2026.

Looking ahead, several institutions remain optimistic about the long-term strategic allocation value of gold.

The World Gold Council (WGC) recently released its latest market report, indicating that the gold market is currently in a clear “wait-and-see mode.” Due to the lack of important macroeconomic data this week, the short-term trend of gold is expected to closely follow the daily developments of the Middle East situation. The navigation status of the Strait of Hormuz has become a key variable influencing current market sentiment. Nevertheless, institutional investors’ optimistic attitude toward the long-term strategic allocation value of gold remains unchanged.

The macro team of CITIC Securities released a research report stating that the medium- to long-term bullish logic for gold has not been disrupted, but the short term requires waiting for liquidity shocks to diminish.

(Editor: Qian Xiaorui)

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