China's Gold Trading Restrictions and Their Impact on Global Prices

Jul 26, 2026

73 min

Jul 26, 2026 11:30

China curbs retail gold trading? What happens to global gold prices now

## Overview of China's Gold Trading Changes

Recently, several major Chinese banks, including the Industrial and Commercial Bank of China (ICBC), ceased offering certain precious-metals trading services to individual customers. This move, effective by July 24, was part of a broader strategy to manage risks associated with retail trading of leveraged gold products. Despite initial concerns, this did not lead to a significant surge in global gold prices.

## Impact on Global Gold Prices

The anticipated spike in gold prices did not occur following the changes in China's trading policies. Instead, other factors like oil prices, U.S. interest rates, and the dollar's strength continued to exert more influence on gold prices. On July 24, gold prices remained stable, with spot gold and futures settling between $4,050 and $4,070 per ounce.

## China's Continued Gold Demand

Despite the changes in trading policies, China's demand for physical gold remains strong. In June, China imported approximately 173 tonnes of gold, marking the highest monthly total since March 2024. This increase in imports was driven by lower international prices and a stronger yuan, making gold more affordable.

## Future Outlook

While China's policy changes have reduced speculative retail trading, they have not significantly altered the global gold market. The Shanghai Gold Exchange remains operational, and Chinese buyers can still invest in physical gold and gold-backed ETFs. The future direction of gold prices will likely depend on broader economic factors, including U.S. monetary policy and geopolitical developments.

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