China's largest state banks are tightening restrictions on individual gold purchases as demand surges significantly.

Reports indicate that major lenders such as the Industrial and Commercial Bank of China, China Development Bank, and Bank of China are imposing daily quotas nationwide on purchases of "accumulative gold" products.

Once the daily quota is reached, any additional purchases through that bank are halted for the remainder of that day.

This move came as gold price volatility increased and demand for physical metal delivery rose.

Some banks have also begun extending delivery periods for physical gold products.

"Accumulative gold" products are investment accounts managed by banks that provide exposure to gold prices, but do not represent ownership of actual separate gold bars.

The rapid surge in individual demand may force banks to purchase additional physical gold through the Shanghai Gold Exchange, increasing liquidity risks and balance sheet risks.

Reports indicate that Chinese regulators are encouraging stricter restrictions as local gold speculation intensifies.

Meanwhile, the People's Bank of China continues to increase its gold reserves for 16 consecutive months, with holdings estimated to reach approximately 2309 tonnes...

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