HKEX waives gold futures trading fees for 12 months starting July 6

HKEX will waive trading fees on USD gold futures for 12 months starting July 6, cutting the standard USD 1 per side per contract cost to zero.

"The fee waiver is designed to enhance market liquidity and attract a broader range of participants to our gold futures product," HKEX said in a statement, without disclosing specific volume targets.

The waiver covers all USD gold futures contracts traded on the exchange from July 6, 2026 to June 30, 2027. HKEX also introduced separate incentive programs for liquidity providers and active traders, though details on rebate structures were not disclosed.

The move comes as COMEX gold futures traded near USD 4,480.50 per ounce on Wednesday, down 0.48% from the prior close, with spot gold at USD 4,484.50, according to Yahoo Finance and Stooq data. Lower trading costs could boost HKEX's gold futures volumes at a time when global gold demand reached a record 1,230.9 tonnes in Q1 2026, including over-the-counter investment, the World Gold Council reported.

Gold Demand at Record Highs

Global gold demand rose 2% year-on-year to 1,230.9 tonnes in the first quarter, the highest on record, the WGC said. Central banks made net purchases of 244 tonnes, up 3% from a year earlier, while bar and coin demand surged 42% to 474 tonnes, driven primarily by Asian investors.

The fee waiver positions HKEX to capture a larger share of that demand. COMEX gold futures have averaged daily volumes of roughly 300,000 contracts this year, while HKEX's gold futures product has historically traded at a fraction of that level.

What the Waiver Means for Traders

At the standard USD 1 per contract fee, a trader executing 10,000 round-turn lots would save USD 20,000 over the waiver period. For market makers providing continuous two-sided quotes, the savings could be substantially larger, potentially narrowing bid-ask spreads and attracting algorithmic trading flow.

The waiver period coincides with a pivotal stretch for gold markets. The US Federal Reserve held rates at 3.50% to 3.75% at its May meeting, with four policymakers dissenting, a divide that has grown as the Middle East conflict fuels inflation uncertainty. Thursday's US Q1 GDP release and PCE inflation data will provide the next directional cues for gold prices.

This article is for informational purposes only and does not constitute investment advice.