Gold prices fall below the $4,920 mark! Precious metals agency business tightens, with several banks urging clients to terminate contracts and close accounts promptly.

Hot Topics

Selected Stocks Data Center Market Center Capital Flows Simulated Trading

Client

Source: Shell Finance

On the evening of March 18, gold prices experienced a short-term plunge, with spot gold falling over 2%, reaching $4,900 per ounce during trading; COMEX gold dropped over 1.5%, reaching $4,916 per ounce during trading.

The precious metals market has been highly volatile, prompting many banks to expedite the termination of agency precious metals services. On March 17, Minsheng Bank and Postal Savings Bank issued notices reminding clients who have not yet completed contract termination to do so promptly.

“Several banks are gradually shutting down their agency personal precious metals trading services at the Shanghai Gold Exchange, mainly due to tightening regulatory policies and increased risk control requirements in the financial market,” said Yu Fenghui, senior researcher at Pangu Think Tank. “As domestic and international economic conditions change and precious metals market prices fluctuate more intensely, banks are choosing to exit personal precious metals trading to prevent potential market, operational, and compliance risks, aiming to protect investors’ interests and maintain financial market stability.”

On March 17, Minsheng Bank announced that due to the extreme volatility in the precious metals market, it is reminding personal clients who have not yet completed contract termination to quickly handle contract extension closures, inventory sales, withdrawals, and termination operations. The bank will continue to promote the termination and account closure of agency precious metals services.

According to the announcement, Minsheng Bank closed the buy and open trading functions for agency personal precious metals spot and deferred trading at the Shanghai Gold Exchange starting from market close on July 22, 2022; and from market close on February 1, 2023, it began terminating agency precious metals accounts for clients with no spot inventory and no deferred positions, with client margins automatically transferred to the signed account.

“Recently, precious metals prices have been highly volatile. Customers are advised to operate as soon as possible to avoid forced liquidation at prices different from their expectations,” the notice said. On the same day, Postal Savings Bank also urged clients to terminate contracts, stating that the suspended products include: Au99.99, Au100g, Au99.95, PGC30g, Au (T+D), mAu (T+D), Ag (T+D), Au (T+N1), Au (T+N2), among others. Customers holding these contracts or inventories are encouraged to sell or close positions via mobile banking promptly.

If operations are not completed by 00:00 on March 27, 2026, Postal Savings Bank will, to ensure the safety and rights of clients’ accounts, execute forced liquidation or inventory sales according to relevant terms. Funds from forced sales or liquidations will be automatically transferred to the bank’s settlement account linked to the client’s agency deposit account.

On February 11, Postal Savings Bank announced that from that day (February 11, 2026) until 00:00 on March 13, 2026, it would cease agency services for personal precious metals at the Shanghai Gold Exchange.

Not only are Minsheng Bank and Postal Savings Bank tightening their agency precious metals services, but several other banks have also announced adjustments to their agency precious metals operations.

Ping An Bank announced on March 10 that starting April 1, 2026, it will gradually close its agency personal precious metals trading services at the Shanghai Gold Exchange as circumstances permit. Industrial Bank announced on February 3 that after February 14, 2026, it will close its agency personal precious metals trading channels on the Shanghai Gold Exchange’s online banking platform.

“Given the current sharp fluctuations in the precious metals market and significant market risks, we remind personal clients who have not yet completed contract termination to do so promptly. We will continue to adjust customer trading channels based on market conditions and business development needs,” said Industrial Bank.

Yu Fenghui believes that although many banks are withdrawing from agency precious metals services, this does not mean the service will disappear entirely. In the long term, these adjustments will help promote the standardization and healthy development of the precious metals investment market, improve market transparency, reduce unreasonable speculation, and encourage more institutions and individual investors to turn to more professional and regulated investment channels and services.

Entering March, international gold prices have shown oscillating trends. On the evening of March 18, gold prices plunged briefly, with spot gold falling over 2%, reaching $4,900 per ounce; COMEX gold fell over 1.5%, reaching $4,916 per ounce during trading.

In addition to the tightening of bank agency precious metals services, gold accumulation-related services are also being restricted. China Construction Bank, Industrial and Commercial Bank of China, and others have implemented dynamic quota management for gold accumulation, with limits exhausted on the same day, preventing further purchases.

Cinda Futures research report pointed out that looking ahead, in the short term, gold remains in a phase of intertwined geopolitical risks and macro interest rate expectations. The Middle East conflict has yet to show clear signs of easing, meaning safe-haven factors still have room to fluctuate; however, high energy prices continue to impact inflation and policy paths, putting downward pressure on gold prices. With mixed factors, the market is unlikely to form a clear trend, and fluctuations are expected to remain within a range.

The report emphasized that attention should be paid to this week’s interest rate decisions and Powell’s early morning speeches. If policy signals are hawkish or focus on inflation, gold prices may remain under pressure; conversely, if concerns about the economy or risk events are expressed, downward pressure could ease.

Looking ahead, Wu Zewei, a special researcher at Suzhou Commercial Bank, believes that the domestic gold retail market will develop along the trend of “overall growth, structural differentiation, and stricter risk control.” Against the background of “de-dollarization” and a global central bank gold-buying boom, the long-term value of gold remains solid.

Wu Zewei states that banks will further strengthen risk controls, possibly increasing risk rating thresholds and enhancing monitoring of leveraged gold trading beyond dynamic quotas. This shift indicates a move from extensive expansion to more refined management. For investors, trading flexibility may decrease, but market speculation bubbles will be effectively suppressed.

Dong Ximiao, Chief Economist at Zhaolian and Deputy Director of the Shanghai Finance and Development Laboratory, warns that “gold price volatility at high levels in 2026 will likely intensify further. Investors should consider their own risk appetite, investment needs, and capabilities to make suitable asset allocations.”

Wu Zewei advises that ordinary investors should abandon short-term speculation and return to the long-term asset allocation nature of gold. Specifically, he recommends a “dollar-cost averaging” approach—investing in small amounts periodically through accumulated gold or physical gold bars to smooth costs and avoid chasing high prices in one go. It is also crucial to strictly control the proportion of gold holdings within reasonable family investment assets and avoid using consumer loans or credit card cash-outs to participate, preventing personal financial crises during sharp price swings. The key is to use time and discipline to hedge against high market volatility.