Gold prices reach a historical high: Exchanges step in to regulate

Since the beginning of the year, gold prices have frequently hit new all-time highs, stirring investor enthusiasm. However, this has been followed by regulatory measures from exchanges. The Shanghai Futures Exchange and the Shanghai International Energy Exchange have successively released a series of risk control measures, adjusting the price limit ranges and the margin ratios for precious metal futures contracts. Their aim is to stabilize market sentiment and prevent excessive trading.

On April 16th, the Shanghai Futures Exchange (SHFE) and the Shanghai International Energy Exchange (INE) released several risk control measures. Among them, the SHFE announced that starting from April 17th, the price limit ranges for gold and silver futures contracts would be adjusted from 6% and 7% to 8%, and the margin ratios for both hedging and speculative transactions were also modified. These moves are aimed at stabilizing market sentiment and avoiding excessive trading.

The SHFE had previously implemented trading limit measures, restricting the number of new positions for gold and copper futures within a day to control market risk. These measures have sparked widespread interest in the market, with investors full of expectations and speculation about the market's direction.

Meanwhile, the Shanghai Gold Exchange (SGE) also implemented measures to increase the margin ratio, aiming to further control market risk. These actions highlight the exchanges' emphasis on market stability and serve as a reminder for investors to exercise caution.

Despite gold's rapid price increase in the past two months, the renowned institution Goldman Sachs still holds a positive outlook on gold's future. They have raised their year-end gold price forecast to $2,700 per ounce, believing that new incremental factors and the geopolitical environment will continue to support the rise in gold prices.

Xia Yingying, the Director of Nonferrous Metals at Nanhua Futures Research Institute, noted that the rise in precious metal prices is due to multiple factors, including geopolitical turmoil, a weakening US dollar, and increased investment demand. These factors together are driving up gold and silver prices, keeping the market enthusiasm high.