Gold prices hit the biggest increase in five years

In the early morning of April 10, international precious metal futures closed sharply higher, with COMEX gold futures up 3.67% at $3,099.8/ounce, the largest intraday increase since March 2020, approaching the $3,100 integer mark; COMEX silver futures rose 4.31% to $30.965/ounce.

According to Reuters, Bart Melek, head of commodity strategy at TD Securities, said, “In the final analysis, gold continues to be seen as a hedge against instability. We have encountered a situation where tariffs have become a big problem, and inflation expectations will be higher, which is reflected in higher yields.”

According to Reuters, investors fled stocks and industrial commodities and turned to gold due to concerns that tariffs would exacerbate inflation and hinder economic growth.

Shanghai Gold Exchange Gold T+D closed up 1.35% at 729.5 yuan/gram in late trading on Wednesday; Silver T+D closed up 2.41% at 7,865.0 yuan/kilogram.

Recently, the sharp fluctuations in the precious metals market have attracted regulatory attention. On April 7, the Shanghai Gold Exchange issued a notice to adjust the margin ratio and price limits of gold deferred varieties and silver deferred contracts in view of the recent sharp fluctuations in gold and silver prices.

Among them, until the close of April 8, 2025 (Tuesday), the margin ratio and price limits of gold deferred varieties and silver deferred contracts will remain unchanged during the Qingming Festival. From the close of settlement on April 8, 2025, the margin ratio of Ag (T+D) contracts will be adjusted from 13% to 15%, and the price limit will be adjusted from 12% to 14% from the next trading day.