China’s largest bank ICBC has suspended trading services for the precious metal for individual investors due to a sharp drop in gold prices. The price has tumbled from the high to Rs 1.97 lakh to Rs 1.41 lakh per 10 grams, causing fear among investors.
China Bank Gold Action:A few months back, gold prices were touching continuous highs. Under these circumstances, investors thought that prices would rise further. However, the market rallied to such an extent that gold prices fell sharply in the month under review. Apart from investors, China’s largest bank has also been shaken by fear due to this decline. Due to this, many banks in China have now started closing services related to gold and other precious metal trading for ordinary investors.
It has come down from Rs 1.97 lakh to Rs 1.41 lakh per 10 grams and the spot gold price in January this year was around $5,600 per ounce, which has tumbled to around $4,000.
If it is understood in Indian prices, it comes to about Rs 5.32 lakh per ounce or about Rs 1.97 lakh per 10 grams.
Now this picture has completely changed. Spot gold has fallen below $4000 an ounce this week. That means the price is approximately Rs 3.80 lakh per ounce or Rs 1.41 lakh per 10 grams.
Why did China take this decision?
Industrial and Commercial Bank of China (RCBC), China’s largest bank, has announced that it will cease intermediary services to individual investors for precious metal trading products linked to the Shanghai Gold Exchange after the settlement on July 24.
Besides ICBI, China Guangfa Bank also told its clients that it has closed its positions in precious metals as of 3:30 pm (Hong Kong time) on Thursday.
If a customer does not do so, then by the end of the month the bank will forcefully liquidate his position.
