In May, against a backdrop of stock market turbulence and a weak CNY, the Shanghai Gold Benchmark price rose by 2.8%. Beyond the price appreciation, there is an interesting story in the two most popular gold contracts traded on the Shanghai Gold Exchange:
- Trading volume of Au(T+D), a margin-traded and the most liquid gold contract traded on the Shanghai Gold Exchange (SGE), reached 1276t in May1, 286t higher y-o-y. It rose almost 50t from the start to the end of the month.
- Trading volume of Au9999, a physical-traded gold contract on the SGE, amounted to 371t in May. This was a 115t decline y-o-y and the fourth lowest monthly accumulated volume in three years2. Also, the volume decreased by 10t from May 6th to May 31st.