Trading and physical delivery activity have remained vigorous since the introduction of enhancements to the US dollar gold futures contract at HKEX. A physical delivery completed today reached an all-time high for the contract, underscoring the product's pivotal role in bridging the futures market with the physical gold market.

Today, HKEX's US dollar gold futures saw 145 kilograms of gold physically delivered, surpassing the previous record of 63 kilograms set in December 2018 and marking the highest single-day physical delivery volume in the contract's history.

Since the market optimization took effect on July 6, average daily volume (ADV) for US dollar gold futures reached 9,974 contracts through August 19, representing a notional turnover of approximately USD 1.35 billion and attracting participation from over 30 market makers and traders.

Physical delivery remains a key feature of HKEX's US dollar gold futures, effectively linking the futures market with the physical gold ecosystem. The relaunch of this product is fostering the clustering of supporting services such as gold warehousing, logistics, and delivery in Hong Kong, further bolstering the city's status as an international gold trading hub and enriching the local gold market landscape.

What do market participants think about the performance of US dollar gold futures following the optimization measures? Here are their observations and insights.