China’s Gold Price Breaks 1,000 Yuan as Regulators Step In
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On Friday, the Shanghai Gold Exchange’s main Au99.99 spot contract surged to an intraday high of 1,002 yuan before closing at 997.2 yuan
China’s benchmark gold price breached 1,000 yuan ($121) per gram for the first time, prompting regulators to hike margin requirements in a bid to temper overheated trading.
On Friday, the Shanghai Gold Exchange’s (SGE) main Au99.99 spot contract surged to an intraday high of 1,002 yuan before closing at 997.2 yuan. Prices have soared 13.7% over the five trading sessions since the National Day holiday in early October.
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- China's gold price surpassed 1,000 yuan ($121) per gram for the first time, with a 13.7% surge since early October.
- Regulators raised margin requirements and trading limits on gold and silver futures to manage speculation, with margins now at 15%-16%.
- The rally is driven by safe-haven demand amid US political and financial instability; institutional investors remain cautious.
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Who’s Who
- Shanghai Gold Exchange
- The Shanghai Gold Exchange (SGE) in China is a key gold market regulator. Its main Au99.99 spot contract hit a record 1,002 yuan per gram. The SGE has increased margin requirements and widened daily trading limits for gold and silver contracts multiple times in 2025 to curb speculation amid significant price volatility.
- Shanghai Futures Exchange
- The Shanghai Futures Exchange (SFE) is working to manage volatile gold and silver prices driven by speculative trading. To cool down the overheated market, the SFE has increased daily trading limits to 14% and raised margin requirements to 15% for hedge positions and 16% for speculative trades, effective October 21. This is a common practice by the exchange to manage risk during periods of significant price swings.
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What Happened When
- Start of 2025：
- SGE Au(T+D) gold contract margin ratio was 10% and trading limit was 9%.
- April 2025：
- SFE raised trading limits to 11% and margin ratios to 12% for hedge positions and 13% for speculative positions.
- As of October 2025：
- SGE Au(T+D) gold contract margin ratio increased to 16% and trading limit widened to 15%. SGE modified margin levels and trading limits for spot gold and silver contracts six times in 2025.
- Five trading sessions after National Day holiday in early October 2025：
- Gold prices soared 13.7% over these five sessions.
- Friday, October 17, 2025：
- Shanghai Gold Exchange's (SGE) main Au99.99 spot contract surged to an intraday high of 1,002 yuan per gram and closed at 997.2 yuan. Benchmark gold price breached 1,000 yuan per gram for the first time.
- Friday, October 17, 2025：
- Shanghai Futures Exchange (SFE) announced it would widen the daily trading limit for gold and silver futures to 14% and raise margin requirements starting from October 21, 2025.
- By October 17, 2025：
- Gold futures in New York surged past $4,300 an ounce, peaking at $4,392.
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