Gold Prices Show Short-Term High Volatility; Banks Shift Risk Control Strategy Toward Dynamic Adjustment

Securities Times Reporter Huang Yulin

On March 25, spot gold continued its recent high volatility, briefly breaking above the $4,600 per ounce level during trading.

Reviewing the market on March 23, spot gold repeatedly fell below key levels of $4,500, $4,400, $4,300, $4,200, and $4,100 per ounce. It dropped below $4,100 for the first time since November 2025, with intraday declines reaching 9.75%, erasing all gains for the year.

In response to the short-term volatility risks in the precious metals market, domestic banks have quickly adjusted their risk control mechanisms. According to Securities Times, 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 notices warning investors of market risks in precious metals.

These notices state that recent domestic and international precious metal prices have experienced sharp fluctuations, with significant increases in uncertainty and market risk. Customers are advised to fully and cautiously assess their risk tolerance, consider their financial situation comprehensively, and conduct precious metal trading prudently to maintain rational investment attitudes. Additionally, they should closely monitor market changes, control their positions reasonably, and effectively prevent market volatility risks.

Besides issuing risk warnings, many banks are also adjusting trading rules for stored gold and other precious metals. For example, China Construction Bank and ICBC announced that under certain conditions, they will implement limits on gold purchase amounts to control overall trading volume; China Merchants Bank and Jiangsu Bank are adjusting trading fees to increase short-term trading costs.

Industry experts note that these measures represent a shift from the banks’ previous “static defense” approach to a “dynamic adjustment” risk control strategy, guiding investors toward reasonable long-term asset allocation.

For instance, China Merchants Bank has adjusted the bid-ask spread for gold account transactions at the same quote time to 5 yuan per gram, with the buy spread increasing by 2 yuan per gram while the sell spread remains unchanged. This adjustment is expected to run until June 27; starting June 29, the bid-ask spreads for gold account transactions at the same quote time will be adjusted to 2.5 yuan per gram on both sides.

Jiangsu Bank will also revise its fee schedule for gold savings starting January 1, 2026. The base fee for buying, redeeming, or exchanging physical gold through this service will be 1.5 yuan per gram; from January 1 to March 31, 2026, a discounted rate of 1.2 yuan per gram will apply (compared to 1 yuan per gram in 2025); from April 1 to December 31, 2026, the discounted rate will be 1.4 yuan per gram.

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

The World Gold Council (WGC) recently released a market report indicating that the gold market is currently in a clear “wait-and-see mode.” Due to the lack of significant macroeconomic data this week, short-term gold prices are expected to fluctuate closely following daily developments in the Middle East. The navigation status of the Strait of Hormuz has become a key variable influencing current market sentiment. Nevertheless, institutional investors remain optimistic about gold’s long-term strategic value.

CITIC Construction Investment’s macro team published a report stating that the medium- to long-term bullish logic for gold remains intact, but short-term liquidity shocks need to subside before a sustained rally can occur.

(Edited by: Guo Jiandong)

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