Gold prices retreat, and major banks are beginning to lower the risk level of stored gold.

On May 12th, one week after the Industrial and Commercial Bank of China announced, the risk level of the Ruyi Gold Savings Business will be downgraded from R3 (medium risk) to R2 (low-medium risk);

At the same time, the client’s risk tolerance access standard will also be lowered from C3 (balanced) to C2 (conservative and above).

The hub notes that the previous adjustment of similar business thresholds by this bank was only four months ago.

In early January this year, due to increased market volatility at the time, ICBC issued an announcement raising the risk access level for personal savings gold business to C3;

This downgrade of the risk rating to C2 means that some conservative investors who were restricted from trading earlier this year due to higher thresholds will regain eligibility to participate.

Banks perform dynamic risk assessments of agency or proprietary asset products as a routine measure to fulfill investor suitability obligations.

Since last year, multiple institutions including ICBC, Bank of China, China Construction Bank, CITIC Bank, and Ningbo Bank have raised the entry thresholds for precious metals-related businesses in response to market changes.

The recent downgrade by ICBC is based on a reassessment of current market risk exposure following significant fluctuations in gold prices earlier.

At the beginning of this year, international gold prices experienced notable volatility, reaching nearly $5,600 per ounce at the end of January, then retracing over 10% in a short period;

Recently, as the market gradually digests external premium factors such as geopolitical risks, gold prices have entered a relatively stable range, with spot prices oscillating around $4,700 per ounce, and profit and loss fluctuations in savings gold business have normalized.

This sideways trading after wide fluctuations has led to clear divergence among institutions regarding the future direction of gold.

In a report in April this year, Morgan Stanley lowered its target price for gold in the second half of 2026 from $5,700 per ounce to $5,200, believing that the liquidity-driven rally has ended and future pricing will rely more on macroeconomic data; institutions like HSBC also warned of selling pressure on related assets under a strong dollar.

Conversely, Goldman Sachs and Wells Fargo, based on geopolitical factors and long-term monetary logic, maintain an optimistic outlook.

External pricing divergences and volatility objectively increase the difficulty for domestic retail investors to trade.

To alleviate the passive trading caused by time zone differences, in addition to dynamically adjusting risk ratings, extending trading hours is becoming a common practice among domestic commercial banks.

Price movements of precious metals are mostly concentrated in European and American trading sessions. Previously, domestic banks often closed savings gold trading overnight, making it difficult for investors to respond promptly to overnight sudden risks.

Currently, Industrial Bank has launched night trading, and banks such as China Construction Bank, China Merchants Bank, Jiangsu Bank, and Minsheng Bank have extended trading hours to until 2 a.m. or later the next day to cover the main active international quotation periods.

Whether it is adjusting risk levels or extending trading hours, these are adaptive measures by banks to cope with high asset price volatility.

For investors participating in the market, compared to focusing solely on the change in access thresholds, it is essential to reassess the true volatility of savings gold and ensure it aligns with their actual risk appetite before engaging in trading.

Risk Warning and Disclaimer

Market risks exist; investments should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Invest accordingly at their own risk.