HKMEx opens

HKMEx starts trading gold futures contract for physical delivery

The China-backed Hong Kong Mercantile Exchange offers a US dollar-denominated gold futures contract supported by bullion stored in Hong Kong's vaults, and plans to launch a renminbi-denominated contract later this year.
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Gold hit a record $1,577.57 an ounce on May 2
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<div style="text-align: left;"> Gold hit a record $1,577.57 an ounce on May 2 </div>

The Hong Kong Mercantile Exchange HKMEx started trading its first gold futures contract yesterday, responding to a surge in demand for the precious metal among regional investors during the past few years.

The 32 troy ounces futures contract is denominated in US dollars, with physical delivery in Hong Kong for the first time. The initial trade was transacted by Industrial and Commercial Bank of China ICBC, one of 18 exchange members, when the market opened at 8am HKT. By 5.30pm, a total of 3,415 contracts had been traded with a value of $163.33 million, and dealing continued until 11pm when the market closed.

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