Adjust the margin, control the quota, and guide banks to conduct precious metal trading rationally.

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● This reporter, Li Yunqi

Recently, China Merchants Bank announced that starting March 23, the buy-sell spread for its gold account business would be widened from 3 yuan/gram to 5 yuan/gram, increasing trading costs for investors. Since the beginning of this year, multiple banks have issued risk warning announcements for precious metals business in quick succession, and have taken measures such as dynamic transaction limits and increasing buy-sell spreads for precious metals trading. Against the backdrop of heightened volatility in precious metals prices, banks are taking a range of steps to guide investors to participate cautiously.

Increase the spread for gold account business

China Merchants Bank recently released a notice regarding adjustments to the spread for its gold account business. It stated that as volatility in the gold market has increased recently, to mitigate related risks, starting March 23, the bank will adjust the buy-sell transaction spread at the same quoted time point for its gold account business to 5 yuan/gram. Specifically, the spread in the buy direction will increase by 2 yuan/gram, while the spread in the sell direction will remain unchanged. The adjusted spread plan is expected to run until June 27. Starting from the opening of business on June 29, the buy-sell spreads at the same quoted time point will be adjusted to 2.5 yuan/gram on both the buy and sell sides.

A reporter with China Securities Journal consulted a customer service manager at China Merchants Bank about this matter. The bank’s customer service manager said that before March 23, the buy-sell transaction spread at the same quoted time point for gold account business was 3 yuan/gram, and there was no strict distinction between the spread in the buy direction and the spread in the sell direction. From March 23 to June 27, the spread in the buy direction increased by 2 yuan/gram, and the corresponding buy-sell transaction spread at the same quoted time point increased to 5 yuan/gram. Because existing customers had already bought before March 23, the adjustment of the buy-direction spread has no impact on existing customers. Starting June 29, the gold account will implement a new balanced spread model, with the spread in both the buy and sell directions at 2.5 yuan/gram.

What is the buy-sell transaction spread? In the “China Merchants Bank Retail Client Gold Account Business Service Agreement” that the reporter reviewed, it states that due to certain trading costs, the gold account buy and sell quotes will have a certain price difference versus the Shanghai Gold Exchange gold futures contract price or the international gold spot market price referenced in real time. At the same quoted time point, the gold account business also has a certain price difference between its buy price and sell price (i.e., the buy-sell transaction spread), with the sell price lower than the buy price. The buy-sell transaction spread is not a fixed value. China Merchants Bank has the right to adjust the buy-sell transaction spread for gold accounts based on conditions in the gold market. On March 25, the reporter saw in the China Merchants Bank app that at that time the gold buy price was 1018.08 yuan/gram and the sell price was 1013.08 yuan/gram—differing by 5 yuan/gram, which is the buy-sell transaction spread.

Accumulated gold business sees adjustments

In fact, multiple banks have recently adjusted their accumulated gold business. For example, Jiangsu Bank announced on February 27 that starting from 20:00 on March 19, the bank would timely adjust the buy-sell spreads for gold accumulation based on fluctuations in international and domestic gold prices and market liquidity conditions. This spread is not fixed. In addition to the buy-sell trading fees collected by the bank, the price differences caused by fluctuations in the gold price and market liquidity will also result in a situation where the buy-sell spread exceeds the buy-sell trading fees after adjustment. The portion exceeding the price difference is not the bank’s trading fee, but the buy-sell price difference caused by factors such as market liquidity. A notice from China Construction Bank dated March 3 stated that, to further improve risk control, the bank would implement dynamic transaction limit management for Jianhang Gold (including YiCun Gold) starting March 4.

The aforementioned customer service manager at China Merchants Bank said that the main reason for the adjustment to the accumulated gold business is market change. The gold market has shown significant volatility recently, liquidity risk has increased, and trading costs have risen noticeably, which is unfavorable for the stable operation of the bank’s business and customers’ independent trading. Therefore, the bank adjusted the buy-sell transaction spread.

Qu Rui, Senior Deputy Director of the Research and Development Department at Oriental Jincheng, said that recent expectations of a rebound in inflation prompted a sharp cooling of expectations for Fed rate cuts. The sharp rise in U.S. Treasury yields led to tighter liquidity, and therefore gold prices experienced significant fluctuations. In the short term, elevated crude oil prices will make the outlook for Fed rate cuts unclear, and gold prices may face downward pressure.

Avoid price volatility risks

Sharp fluctuations in gold prices have also prompted banks to issue risk warnings. On March 24, China Merchants Bank announced that there are many uncertain factors in the precious metals market recently, and price volatility has intensified. The bank asked customers to enhance their risk prevention awareness for precious metals business. Based on their own financial conditions, risk tolerance, and investment experience, customers should conduct precious metals investment activities rationally, reasonably control the size of their precious metals asset holdings, and avoid short-term speculation or following trends. From a long-term asset allocation perspective, rationally allocate precious metals assets, control total investment amount, and make diverse arrangements.

Qu Rui advised that investors should remain on the sidelines in the short term to avoid risks caused by blind actions. In the medium to long term, they can seize opportunities to position during pullbacks. They can build positions in batches, use gold as a hedging tool accounting for 5%-10% of an asset portfolio, focus on core catalysts such as the Fed rate-cut window, and be alert to potential risks such as inflation heating up beyond expectations.

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责任编辑：Zhu Henan