Gold and silver rebound after sharp declines; silver prices have fallen over 40%. ICBC issues two consecutive announcements.

(Source: Finance News)

          The main silver futures contract on the New York Mercantile Exchange is priced at $72.805 per ounce, with a daily increase of 2.23% and a year-to-date increase of 3.12%. Compared to the high of $121.785 per ounce in January of this year, it has fallen over 40%.            

On March 20, influenced by a weakening dollar and ongoing tensions in the Middle East, international gold and silver futures prices rebounded after a sharp decline in the previous trading day. As of 15:50 Beijing time on the 20th, the main gold futures contract on the New York Mercantile Exchange is priced at $4698.50 per ounce, with a daily increase of 2.01% and a year-to-date increase of over 8.23%. However, compared to the historical high of $5626.80 per ounce set in January, it has already fallen over 16%. Additionally, the main silver futures contract on the New York Mercantile Exchange is priced at $72.805 per ounce, with a daily increase of 2.23% and a year-to-date increase of 3.12%. Compared to the high of $121.785 per ounce in January, it has fallen over 40%.

Previously, affected by the plunge in international gold prices during the night session, domestic gold jewelry prices plummeted, with several brands’ prices dropping to around 1440 yuan, a decrease of about a hundred yuan over two days. On the 19th local time, concerns over inflation triggered by a significant rise in energy prices overshadowed global markets, spreading panic among investors who sold off risk assets and precious metals for cash. Coupled with the dollar index fluctuating above 100, this further suppressed precious metal prices. As of 21:05 Beijing time, the April delivery gold futures price on the New York Mercantile Exchange is $4577.50, with a decrease of 6.51%.

On the same day, the Industrial and Commercial Bank of China (601398.SH) announced the revision of the agency agreement for personal customer precious metal bidding transactions and clarified the forced liquidation margin ratio. The announcement pointed out that, according to precious metal risk management and business needs, the bank has revised the “Forced Liquidation and Risk Control Rules” in Appendix 2 of the “Agency Agreement for Personal Customer Precious Metal Bidding Transactions,” forming the “Forced Liquidation and Risk Control Rules (2026 Edition).”

The announcement stated that the calculation method for the margin account sufficiency ratio has been modified, and new forced liquidation margin risk control requirements have been added (i.e., the minimum funds required for customers to maintain their positions). The specific modification methods and other modifications are detailed in the attached document “Forced Liquidation and Risk Control Rules (2026 Edition).” The forced liquidation margin ratio will temporarily follow the minimum trading margin ratio set by the Shanghai Gold Exchange. In the future, the bank will adjust the forced liquidation margin ratio as appropriate based on market conditions and the needs of precious metal risk management and business.

It is worth noting that earlier that day, the Industrial and Commercial Bank of China issued a notice titled “Notice on Risk Prevention and Control in the Precious Metal Market,” stating that due to the complex evolution of the global macroeconomic and geopolitical landscape, the volatility of domestic and international precious metal markets has intensified. To ensure the safety of investors’ assets and stable investments, the bank advises: please maintain a calm and rational investment mindset, fully assess your own risk tolerance, and avoid being driven by short-term market sentiment into blindly chasing rises and selling off. From a long-term asset allocation perspective, it is recommended that investors adhere to the principle of “total control, phased entry, and diversified layout,” extending the investment cycle to smooth out periodic volatility risks and build a more robust asset portfolio.

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