Gold prices have fallen, and major banks have started to lower the risk level of gold accumulation.

On May 12, Industrial and Commercial Bank of China announced that one week later (May 19), the risk level of the Ruyi Gold Accumulation business product will be downgraded from R3 (medium risk) to R2 (medium-low risk);

At the same time, the risk tolerance criteria for customers will also be synchronously lowered from C3 (balanced type) to C2 (prudent type and above).

The hub notes that only four months have passed since the bank last adjusted the threshold for similar business.

At the beginning of this year, due to intensified market volatility, Industrial and Commercial Bank had issued an announcement raising the risk entry level for personal gold accumulation business to C3;

This lowering of risk rating to C2 means that some prudent investors who were restricted from trading due to raised thresholds at the beginning of the year will regain entry qualifications.

Banks dynamically assess the risk levels of agency or proprietary asset products as routine measures to fulfill investor suitability obligations.

Since last year, several institutions including ICBC, Bank of China, CCB, CITIC Bank, and Ningbo Bank have raised the entry thresholds for precious metals-related business in response to changing market conditions.

ICBC's recent downgrading action is based on a reassessment of current market risk exposure after gold prices experienced previous sharp fluctuations.

At the beginning of this year, international gold prices saw a significant surge in volatility, hitting a high of nearly $5,600 per ounce at the end of January before a correction of over 10% within a short period;

Recently, as the market gradually digested external premium factors such as geopolitics, the gold price entered a relatively flat range, with spot prices mostly fluctuating near $4,700 per ounce, and the profit and loss volatility of gold accumulation business returned to normal levels.

This sideways market following wide fluctuations has led to a clear divergence among institutions regarding the outlook for gold.

Morgan Stanley, in its April report, has lowered its target gold price for the second half of 2026 from $5,700 per ounce to $5,200 per ounce, believing that the liquidity-driven rally has ended, and future pricing will rely more on macro data; HSBC and other institutions have also highlighted selling pressure on related assets under a strong US dollar.

By contrast, Goldman Sachs, Wells Fargo and others maintain an optimistic outlook based on geopolitical factors and long-term monetary logic.

External pricing differences and volatility objectively increase the trading difficulty for domestic retail investors.

To alleviate the passive trading caused by time differences for investors, besides dynamically adjusting risk ratings, extending trading service hours is becoming a common practice among domestic commercial banks.

Most abnormal movements in precious metal prices occur during European and American trading hours. Previously, domestic banks tended to close gold accumulation business early at night, making it difficult for investors to respond promptly to sudden overnight risks.

Currently, Industrial Bank has launched night trading functionality. Other institutions such as Construction Bank, China Merchants Bank, Jiangsu Bank, and Minsheng Bank have also extended trading hours for this business to 2 a.m. or later, covering the main international active quotation periods.

Whether it is the adjustment of risk levels or the extension of trading hours, these are adaptive changes by banks to cope with asset price volatility.

For market participants, rather than focusing on the rise and fall of entry thresholds, it is essential to re-examine the actual volatility of gold accumulation and ensure it matches one's own actual risk preference as a prerequisite for trading.

Risk Warning and DisclaimerThe market contains risks; investment must be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular situation. Investments made based on this article are at your own risk.