Shanghai exchange sets trading limits on gold, copper futures as prices rally
The Shanghai Futures Exchange (SHFE) will impose trading limits on its gold and copper contracts, it said on Wednesday, following sharp price rallies by both metals.
The Shanghai Futures Exchange (SHFE) impose trading limits on its gold and copper contracts, it said on Wednesday, following sharp price rallies by both metals.The exchange set the maximum intraday position opening volumes of gold at 2,800 lots and copper at 2,000 lots. The change will start from April 12.
The most-traded SHFE gold contract hit a fresh record of 560.88 yuan ($77.55) per gram on Wednesday, up 16% from the beginning of the year.
The record followed a global price uptrend amid a favourable mix of emerging inflationary risks and geopolitical tensions which have underpinned the safe-haven metal.
The most-traded SHFE copper contract traded as high as 76,860 yuan per metric ton on Wednesday, the highest on record.
A positive outlook for copper, a metal key to the energy transition, and the prospect of cuts by Chinese smelters amid raw material shortages, boosted investor sentiment.
The contract has seen a spike in and trading volumes in recent weeks.
The Shanghai International Energy Exchange (INE) will also impose trading limits on crude oil futures contracts from April 12, it said in a separate notice on Wednesday.
The maximum intraday position opening volume is set at 3,200 lots for each contract.
($1 = 7.2328 Chinese yuan renminbi) (Reporting by Siyi Liu, Andrew Hayley and Beijing Newsroom; editing by Jason Neely)
Source: Stocks-Markets-Economic Times
