The Shanghai Gold Exchange has announced an increase in margin requirements for certain gold futures contracts, raising the requirement from 8% to 9%. This adjustment is set to take effect from the settlement on April 15. Additionally, the bourse has indicated that it will raise daily trading limits for selected gold futures contracts from 7% to 8% starting from the next trading session.
The decision to raise margin requirements and trading limits follows a surge in gold prices to historic highs, driven by ongoing geopolitical tensions that have bolstered demand for the safe-haven metal. The most-traded June gold futures contract on the Shanghai Futures Exchange experienced a 2.17% increase, reaching 567.6 yuan per gram, representing a 17% rise since the beginning of the year.
Concurrently, spot gold reached a record high of $2,389.29 per ounce earlier in the session, signaling the heightened interest in gold as a hedge against geopolitical uncertainty and market volatility.