Hong Kong's long-anticipated gold clearing and settlement system is scheduled to commence operations next Tuesday, July 7th, with the first gold settlement expected to be completed via the new system on that day.

In a notice issued to gold traders, the Hong Kong Exchanges and Clearing Ltd. (HKEX) announced it will waive fees for gold futures contracts for one year, starting next Monday, July 6th. This move is intended to support the launch of the new system and stimulate activity in the local gold futures market.

Market sources indicate that in the lead-up to the system's activation, there has been a notable shift in the flow of physical gold, with significant quantities of gold bars being transported from London, the United States, and Europe to Asia.

Analysts suggest this movement could heighten volatility in the London gold market in the short term. If the new system successfully attracts greater participation from global and local banks, Hong Kong could potentially evolve from being a passive price-taker in the gold market to a more active participant in price discovery.