Gold prices experience short-term high volatility as banks shift risk control strategies toward dynamic adjustments

Securities Times reporter Huang Yulin

On March 25, spot gold price action continued to show the high-volatility characteristics seen recently, and during the trading session it briefly rose above the $4,600 per ounce level.

Looking back at the March 23 trading session, spot gold fell in succession below the $4,500, $4,400, $4,300, $4,200, and $4,100 per ounce thresholds during the day. It dropped to below $4,100 per ounce for the first time since November 2025. Intraday, it slumped by 9.75% at one point, wiping out all gains for the year.

In response to the short-term volatility risk accumulating in the precious metals market, China’s domestic banking sector has also moved quickly in its risk-control mechanisms. According to a review by Securities Times reporter, this week, major state-owned banks—including Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and Bank of Communications—along with joint-stock banks such as Minsheng Bank and China Merchants Bank, have all issued frequent announcements to investors, highlighting market risks in precious metals business.

The related announcements stated that recent fluctuations in domestic and international precious metals prices have been severe, uncertainty has increased significantly, and market risk has risen. It especially reminded clients to thoroughly and prudently assess their own risk tolerance, carry out precious metals trading in a rational manner by comprehensively considering their own financial conditions, and maintain a rational investment mindset. Meanwhile, it is necessary to closely monitor changes in market conditions and reasonably control position sizes to effectively prevent risks arising from market volatility.

In addition to issuing risk warning announcements, multiple banks have also started adjusting trading rules for precious-metals products such as accumulated gold. Among them, China Construction Bank and Industrial and Commercial Bank of China said that under certain conditions, they will implement quota-based management for purchases of accumulated gold to control the total volume of precious metals trading. China Merchants Bank and Jiangsu Bank, meanwhile, have begun adjusting trading fees, increasing costs for short-term trading.

Industry insiders noted that the above measures reflect banks proactively shifting their precious-metals risk-control thinking from the previous “static defense” to “dynamic adjustments,” guiding investors to make reasonable long-term asset allocation.

For example, China Merchants Bank adjusted the buy-sell transaction price spread for gold account business under the same quoted time point to 5 yuan per gram. In the buy direction, the spread increased by 2 yuan per gram, while the spread in the sell direction remains unchanged. The adjusted spread scheme is expected to run until June 27; starting from the opening of the market on June 29, the buy-side and sell-side spreads for China Merchants Bank’s gold account business under the same quoted time point will be adjusted to 2.5 yuan per gram, respectively.

Jiangsu Bank, starting January 1, 2026, adjusted its charge price schedule for the gold accumulated business. For customers办理 gold accumulated purchase, redemption, and conversion to physical gold business at that bank, the benchmark charging standard is 1.5 yuan per gram. From January 1, 2026 to March 31, 2026, an preferential pricing schedule of 1.2 yuan per gram applies (1 yuan per gram in 2025). From April 1, 2026 to December 31, 2026, the preferential pricing schedule is 1.4 yuan per gram.

Looking ahead to the future, multiple institutions still view the long-term strategic allocation value of gold favorably.

The World Gold Council (WGC) recently released its latest market report, noting that the gold market is currently in a clear “wait-and-see mode.” Since this week lacks guidance from key macroeconomic data, the short-term direction of gold is expected to closely track the day-to-day developments of the situation in the Middle East and fluctuate accordingly. The navigation status of the Strait of Hormuz has become the key variable driving current market sentiment. Even so, institutional investors’ optimistic stance toward the long-term strategic allocation value of gold has not changed.

A research report published by the China Securities Construction and Investment macro team said that the logic supporting a bullish outlook for gold in the medium to long term has not been broken, but in the short term it needs to wait for the liquidity shock to fade.

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责任编辑：Qin Yi