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Shanghai Exchange lifts price limit for gold and silver futures in light of recent rally

Shanghai Exchange lifts price limit for gold and silver futures in light of recent rally

Shanghai Futures Exchange announced on Friday it will increase the daily price limit for gold and silver futures from 12% to 14%, in response to the recent rise in the prices of precious metals.

The exchange also announced that the margin requirements for hedging gold and silver futures positions on the exchange would be raised to 15%, from 13%.

According to the bourse, all adjustments will be effective from the settlement date of October 21.

The record run of gold and silver is due to a growing demand for safe havens amid global trade tensions and heightened bets that the U.S. Federal Reserve will cut rates, as well as strong central bank purchases.

Gold futures traded on the Shanghai Exchange closed daytime trading 3.82% higher, at 999.8 Yuan ($140.31). The contract reached an all-time peak of 1,001 Yuan during the session.

The most popular silver futures traded on the exchange reached a record-high of 12,366 Yuan per kilogram.

Gold and silver both have seen a 61% increase in price so far this year.

(source: Reuters)