Mumbai, 10 April (CommoditiesControl): The Shanghai Futures Exchange (SHFE) announced on Wednesday its decision to impose trading limits on gold and copper contracts, effective April 12, in response to significant price rallies in both metals. The exchange has set the maximum intraday position opening volumes for gold at 2,800 lots and for copper at 2,000 lots.
The price of the most-traded SHFE gold contract soared to a new record of 560.88 yuan ($77.55) per gram, marking a remarkable 16% increase since the beginning of the year. This surge reflects a global uptrend driven by emerging inflationary risks and geopolitical tensions, which have bolstered demand for the safe haven metal.
Similarly, the most-traded SHFE copper contract reached a record high of 76,860 yuan per metric ton on Wednesday. This surge is attributed to a positive demand outlook for copper, particularly due to its crucial role in the energy transition, and expectations of supply cuts by Chinese smelters amidst raw material shortages.
The significant increase in open interest and trading volumes for the copper contract in recent weeks underscores the heightened investor sentiment towards the metal. The implementation of trading limits by the SHFE aims to manage market volatility and ensure orderly trading amidst these price surges.
(By Commoditiescontrol Bureau; +91-9820130172)
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