Hong Kong struck a deal on Monday with the ‍Shanghai Gold ‍Exchange to launch a central gold clearing system ​and expand warehousing capacity to foster the city's gold ⁠market as prices of the precious metal hit record high ⁠of over $5,100 an ‌ounce.

The agreement, signed by Hong Kong's Financial Services and the Treasury Bureau and the ⁠Shanghai Gold Exchange during the Asian Financial Forum, formalised the governance structure for the Hong Kong Precious Metals Central Clearing Company, the city's new gold ⁠clearing system set ​to begin trial operations this year.

Hong Kong's airport authority, which runs the ‍city's principal precious metals depository, will also build up the city's ​gold storage facilities to over 2,000 metric tons in three years, the government said in a statement.

Hong Kong leader John Lee said the move "will see Hong Kong's rise as a regional gold reserve hub," according to a separate government statement.

Gold soared 64% in 2025 for its biggest annual gain since 1979, shattering multiple ⁠records on the back of ‌safe-haven demand, U.S. monetary policy easing, robust central bank purchases and record inflows into exchange-traded funds.

Prices ‌have already ‌risen about ⁠18% since the start of this year.

(Reporting by Xiuhao Chen ⁠and Ryan Woo, Editing by Louise Heavens)