Multiple factors, including expectations of Federal Reserve interest rate cuts, geopolitical tensions, and concerns over the U.S. dollar's credibility, have led to volatile international gold prices, which are fluctuating around the $5,000 mark. Amid the price swings, topics such as "banks making gold bars increasingly difficult to purchase," "inability to buy despite falling gold prices," and "gold products selling out within one minute of release" have gained significant attention. Behind these trends lies a series of measures by several banks to scale back their precious metals business operations as part of enhanced risk management.
Analysts point out that the overall adjustment of banks' precious metals business involves divesting high-risk brokerage services while retaining low-risk operations that align with their core positioning. By raising eligibility thresholds and screening clients, banks aim to ensure that the remaining business lines better match their risk tolerance and regulatory requirements.
**Banks Urge Clients to Close Contracts** On March 17, China Minsheng Banking Corp. issued an announcement stating that due to sharp fluctuations in the precious metals market and to mitigate associated risks, it reminded individual clients who had not yet terminated their precious metals contracts to promptly settle deferred contracts, liquidate holdings, withdraw funds, and close their accounts. The bank emphasized that it would continue to facilitate the termination of agency precious metals accounts.
This move follows earlier announcements made by Minsheng Bank on June 21, 2022, and January 17, 2023, regarding adjustments to individual clients' trading permissions for agency spot and deferred precious metals transactions. According to these notices, the bank suspended buy and open position functions for individual agency precious metals trading on the Shanghai Gold Exchange from the close of business on July 22, 2022. Starting February 1, 2023, it began terminating agency precious metals accounts for clients with no spot holdings or deferred positions, automatically transferring their margin funds to linked settlement accounts. The recent reminder serves as a follow-up urging remaining clients to complete the necessary procedures.
Similarly, on March 17, Postal Savings Bank of China also published a notice regarding the discontinuation of its agency personal precious metals trading services linked to the Shanghai Gold Exchange. The bank stated that if clients fail to complete required operations by March 27, 2026, it would forcibly close positions or liquidate holdings to safeguard account security and client interests. Funds from such forced actions would be automatically transferred to the clients' linked settlement accounts.
In addition to the above institutions, Ping An Bank and Industrial Bank Co., Ltd. had previously indicated adjustments to their agency personal precious metals trading services on the Shanghai Gold Exchange. Ping An Bank plans to gradually restrict related trading permissions and exit the business starting April 1, 2026. Existing clients were advised to close positions, liquidate holdings, transfer funds, and terminate contracts via its "Jujinbao" platform or branch offices before March 31.
Industrial Bank announced that after February 14, 2026, it would close online banking channels for agency personal precious metals trading, while counter and mobile banking services would remain available. The bank also reminded clients who had not terminated their contracts to settle deferred positions, withdraw funds, and close accounts promptly.
Jiang Shu, chief analyst at Shanghai Xirang Industrial Co., Ltd., commented that the contraction of commercial banks' agency precious metals businesses is not driven solely by market factors but results from a combination of regulatory guidance, industry risk incidents, and the inherent characteristics of banking operations. "This trend of contraction is not directly correlated with fluctuations in gold prices," Jiang explained, noting that domestic commercial banks' involvement in precious metals agency services originated from specific historical circumstances.
In November 2007, the People's Bank of China approved the Shanghai Gold Exchange to offer gold spot deferred delivery products to individual clients through commercial banks. At the beginning of 2009, Industrial Bank became the first domestic bank to launch such products nationwide, with other banks following suit.
"However, subsequent risk incidents in the industry prompted regulators to emphasize that commercial banks should focus on stable operations and avoid cross-border involvement in high-risk commodity brokerage services," Jiang added. "The primary goal is to prevent depositors from suffering losses due to high-risk investments, which has accelerated the scaling back of banks' precious metals operations." He noted that over the past five years, banks' agency precious metals businesses have been in a strategic contraction phase.
Wu Zewei, a special researcher at SuShang Bank, concurred, attributing the trend to overlapping factors such as market risks, cost-benefit considerations, and regulatory compliance requirements. From a risk perspective, volatile precious metals prices and leveraged deferred trading increase the likelihood of margin calls, while individual investors often lack robust risk management capabilities. As member institutions, banks bear clearing and compensation responsibilities, leading to expanding risk exposure. In terms of business value, agency precious metals trading generates limited commission income but requires substantial resources for risk control and compliance, further squeezing profit margins. Additionally, rising regulatory demands for investor protection necessitate greater investment in client education and risk monitoring. The imbalance between returns and risks has prompted banks to reassess the business value and proactively tighten controls.
**Accumulated Gold Services May Adjust with Market Conditions** Beyond terminating existing clients and exiting agency precious metals services, several banks have also imposed trading limits, dynamically adjusted spreads, and applied brakes on accumulated gold services to strengthen risk management.
For instance, China Construction Bank stated that, to enhance risk prevention, it would implement dynamic trading limits on its "CCB Gold" products (including Easy Accumulation Gold) starting March 4. Industrial and Commercial Bank of China indicated that, beginning February 7, 2026, it would impose trading caps on its "Ruyi Gold Accumulation" service during weekends and holidays when the Shanghai Gold Exchange is closed. Limits would include daily accumulation/redemption ceilings per client or overall single transactions, with dynamic adjustments, though physical gold withdrawals would remain unaffected. Jinshang Bank also noted that it may adjust buy-sell spreads for gold account transactions in response to sustained market volatility.
According to Jiang Shu, accumulated gold services represent one of the few remaining precious metals-related offerings for individual clients and are unlikely to be completely discontinued. However, due to intensified gold price fluctuations over the past six months, these services are undergoing noticeable tightening. Such adjustments are temporary risk control measures in response to market conditions and may ease as the market stabilizes.
"Banks' tightening of accumulated gold services aligns with industry-wide risk prevention requirements, creating a unified risk management rhythm," Jiang added. The current adjustments focus on raising investment thresholds and screening for qualified clients, thereby reducing disputes arising from small investors' short-term speculative trading. Essentially, banks are streamlining their precious metals operations by shedding high-risk brokerage activities while retaining low-risk services that fit their core functions, using elevated criteria to align remaining offerings with risk appetite and regulations.
Wu Zewei predicted that future personal precious metals services would feature gradual reduction and eventual elimination of leverage, a shift from transaction channels to asset allocation services, and stricter client suitability assessments. This would guide investors toward long-term asset allocation rather than short-term speculative trading.
What impact will banks'密集 adjustments have on ordinary investors? Wu highlighted three main effects: reduced trading flexibility, higher eligibility standards, and the unavailability of leveraged trading tools. Existing clients should closely monitor bank announcements and adhere to deadlines for closing positions, withdrawing funds, and terminating contracts.
Wu also advised investors who include gold in long-term asset allocations to consider physical gold, accumulated gold, or gold ETFs, while carefully assessing their risk tolerance and avoiding the use of non-owned funds for gold investments. Given recent rapid price increases, investors should remain vigilant about potential volatility risks.