China’s GFEX Sets Platinum and Palladium Trading Limits Amid Silver Surge

• New GFEX limits target platinum PT2606–PT2612 and palladium PD2606–PD2612 contracts, effective December 29, 2025.

• Platinum recently hit an all-time high of $2,377.50, now trades 2.4% lower at $2,220.44 after surging 145% year-to-date.

• Palladium dropped over 9% to $1,683.58, up 85% YTD; silver chaos adds market stress with Shanghai prices at record $80 per ounce.

Gain insights into GFEX platinum palladium trading limits effective Dec 29 amid China’s silver surge, platinum highs, and fund crashes. Precious metals volatility impacts global markets—read key facts now. (152 characters)

What are the GFEX platinum palladium trading limits?

GFEX platinum palladium trading limits involve new restrictions set by China’s Guangzhou Futures Exchange on specific contracts for these metals, effective December 29, 2025. According to an official notice issued Thursday, the limits cover platinum futures PT2606, PT2608, PT2610, and PT2612, as well as palladium futures PD2606, PD2608, PD2610, and PD2612. This measure aims to address heightened market activity amid record price swings.

Why is China imposing limits on platinum and palladium trading at GFEX?

China’s precious metals markets, including GFEX, have seen explosive price action, with persistent premiums over global benchmarks like London and COMEX. Platinum reached an all-time high of $2,377.50 last week before retreating 2.4% to $2,220.44, reflecting a staggering 145% year-to-date gain. Palladium, meanwhile, fell more than 9% to $1,683.58 after hitting a three-year peak, still up over 85% for 2025. These moves coincide with broader stress in silver trading, where Shanghai spot prices soared to a record $80 per ounce—over 150% higher year-to-date—compared to global spot silver near $72 per ounce, up more than 120% and on pace for its strongest year since 1979. Gold has also rallied 60% in the same period. Traders cite physical silver shortages in China as a key driver. The Guangzhou Futures Exchange’s notice underscores regulatory efforts to stabilize trading volumes during this frenzy.

The GFEX, one of China’s major commodity exchanges, plays a critical role in facilitating futures trading for metals like platinum and palladium. These metals are essential in industries such as automotive manufacturing for catalytic converters, where palladium demand has surged due to stricter emissions standards. Platinum’s dual role in jewelry and investment has amplified its appeal amid economic uncertainties. Chinese markets have consistently traded at premiums to international prices, signaling strong domestic demand and limited supply inflows. For instance, while global platinum prices rallied, Shanghai and GFEX futures maintained elevated levels, exacerbating volatility for local participants.

This regulatory step follows patterns seen in other Chinese exchanges during periods of extreme speculation. Authorities often adjust position limits, daily price fluctuation bands, or trading halts to prevent excessive risk buildup. Although specific details of the new limits—such as maximum positions or settlement rules—were outlined in the GFEX notice, they collectively target the listed contracts to curb potential disruptions. Market participants must adapt strategies ahead of the December 29 implementation.

Silver Surge Fuels China’s Precious Metals Market Stress

Compounding the platinum and palladium developments, silver trading in China has descended into chaos. Shanghai silver futures hit $80 per ounce, driving year-to-date gains beyond 150%, far outstripping global spot prices hovering near $72 per ounce. On Wednesday, spot silver touched $72.70, marking its best annual performance since 1979 with over 120% appreciation. Physical delivery shortages have been flagged by traders as the root cause, limiting supply amid skyrocketing investment demand.

China’s sole dedicated silver investment vehicle, the UBS SDIC Silver Futures Fund LOF, suffered a brutal reversal Thursday, plunging by its 10% daily limit. This followed a meteoric 220% rise in 2025, surpassing the 128% gain in underlying Shanghai silver futures. By mid-week, the fund traded at a 62% premium to its futures benchmark, up sharply from 7% at December’s start. The fund manager issued repeated warnings after three days of consecutive 10% upside limits, eventually slashing Class C subscriptions to 100 yuan from 500 yuan effective December 26. Such events highlight the froth building in China’s metals sector, prompting GFEX’s proactive stance on platinum and palladium.

Frequently Asked Questions

When do the new GFEX platinum palladium trading limits take effect?

The new GFEX platinum palladium trading limits take effect on December 29, 2025, as stated in the exchange’s Thursday notice. They specifically apply to platinum contracts PT2606, PT2608, PT2610, PT2612 and palladium contracts PD2606, PD2608, PD2610, PD2612, helping manage volatility in these high-flying metals. (48 words)

What caused the sharp drop in China’s silver fund amid GFEX metals limits?

The UBS SDIC Silver Futures Fund LOF dropped 10% on Thursday after surging 220% in 2025 due to extreme premiums over silver futures and physical shortages. This occurred as silver hit Shanghai records at $80 per ounce, prompting regulatory caution like GFEX’s platinum and palladium limits. (49 words)

Key Takeaways

• GFEX Action: New trading limits on platinum and palladium contracts start December 29, 2025, covering PT2606–PT2612 and PD2606–PD2612.
• Price Volatility: Platinum up 145% YTD at $2,220; palladium +85% at $1,684 amid global rallies and China premiums.
• Silver Stress: Shanghai silver at $80/oz record; fund crashes signal risks—monitor for broader metals impacts.

Conclusion

China’s GFEX platinum palladium trading limits represent a key regulatory response to surging precious metals prices, including platinum’s 145% and palladium’s 85% 2025 gains, alongside silver’s chaotic rally and fund turmoil. With Chinese markets trading at premiums to global benchmarks, these measures promote stability. Investors should track developments post-December 29 for opportunities in this dynamic sector—stay prepared for continued volatility in platinum, palladium, and beyond.