Multiple Chinese banks have placed a kibosh on certain precious metal transactions following a surge in the value of gold, silver and palladium to record high during the COVID-19 pandemic.
According to a report from the Beijing Daily on 31 July Chinese lenders have suspended open trades for precious metals accounts in order to avoid related speculative risk.
On 30 July ICBC issued the “Notice Concerning Temporary Suspension of Open Trades for Palladium and Platinum Accounts” (关于暂停账户铂金、账户钯金等业务开仓交易的通告).
The Notice said that fluctuations in international prices for palladium and platinum had become “intense,” and that all open trades for these precious metals would be suspended from 31 July.
ICBC said that at present risk is high on international commodities markets, and requested that investors properly make trading arrangements and engage in risk control based on their holdings.
On 22 July Bank of Communications also suspended open transactions for palladium and platinum, while China Minsheng Bank suspended open trades on 20 July.