Investor appetite for gold has remained remarkably strong over the past year, particularly in Asia, which accounts for more than 60% of annual demand for the precious metal, according to the World Gold Council.

We caught up with Finalto Asia CEO Alex Mackinnon to discuss what’s driving regional demand, Finalto’s innovative gold offering, and how he anticipates the market will evolve in the coming years.

Disclaimer: The products and services mentioned in this article are intended solely for accredited, expert, and institutional investors.

What factors are currently driving demand for gold across Asian markets?

Demand for gold in Asian markets is being driven by several key factors:

• Central bank buying: China and India are leading global gold purchases. This demand is driven by central banks seeking to hedge against US dollar volatility and geopolitical uncertainties.
• Geopolitical instability and currency weakness: Economic uncertainty, trade tensions (notably US–China), and local currency depreciation have fuelled a preference for gold as a safe-haven asset. In China, poor domestic equity and property market performance, alongside ongoing capital controls, are pushing investors toward gold.
• Cultural demand: Gold’s enduring role in wealth preservation and traditional ceremonies continues to underpin strong regional demand, especially in India and China, which together account for about half of global gold bar and coin demand.

Finalto has developed specialised products tailored specifically for the Asian market, such as its Gold Yen instrument. Could you share some recent innovations designed to meet the unique needs of Asian investors?

Finalto’s recent product launches include the Gold Yen (XAUJPY) instrument, a synthetic asset allowing clients to trade and hedge gold in Japanese yen and to our existing offerings against CNH, SGD, THB and AUD. This addition is specifically intended for Asian traders, notably in Japan, Singapore, and Australia, reflecting the region’s demand for local-currency-denominated gold trading.

Additionally, Finalto has broadened access to gold products by offering contracts in grams, taels, ounces, and various currencies (including HKD, USD, and CNH), accommodating diverse local preferences and trading practices across Asia. These developments are enabled by ongoing investment in regional technology and infrastructure (such as new data centres in Singapore) and regular product refinements based on client feedback.

How does flexible pricing benefit investors in the region?

Our offering is designed to provide investors with more flexibility and choice:

• Transact in familiar units: Asian traders and investors can trade gold in units (grams, taels, ounces) and currencies (e.g., RMB, HKD, USD, CNH) that align with local market standards, simplifying both investment and physical settlement.
• Support different investment sizes: Flexibility promotes accessibility to a wider range of non-retail investors, including accredited and institutional investors, and allows for hedging in formats that match exposure or physical bullion holdings.
• Hedge region-specific exposures: By providing multiple unit and currency options, Finalto empowers clients to hedge against local currency or denomination risks, keeping strategies efficient and cost-effective.

How do you stay connected to evolving investor requirements and ensure the offering remains relevant?

Continuous client feedback helps inform our business approach. A strong focus on gathering and acting upon client input ensures new products and improvements directly address user needs.

Our regional presence and local expertise are also essential. With teams on the ground in key Asian markets, Finalto can anticipate client requirements and respond to shifts in market behaviour in real-time.

How do liquidity and execution complement innovation in Finalto’s approach to bullion trading?

Liquidity and execution are pillars of Finalto’s bullion offering:

• Bespoke liquidity pools: Clients benefit from tailored liquidity, tight spreads, and access to a network of Tier 1 banks and non-bank market makers, improving execution quality.
• Sophisticated execution technology: Partnerships with leading technology providers like Your Bourse enable lightning-fast trade execution, with orders processed in under two microseconds under optimal technical conditions, and immediate connectivity for clients using MT4, MT5, or FIX protocols.

Have you observed growing demand for other precious metals in Asian markets?

Yes. While gold remains the largest revenue-generating segment, there appears to be robust and accelerating demand for silver, platinum and palladium. Based on current trends, we believe this segment has the potential for significant growth as the fastest-growing precious metal in Asia. The Asia-Pacific region accounts for nearly half of global precious metal market revenue and is forecast to remain the top regional market, with broader interest also emerging in PGMs (platinum group metals).

Looking ahead, what trends do you anticipate in the Asian precious metals market over the coming few years?

Looking ahead, the following key trends stand out:

• Sustained central bank gold buying: Should countries like China and India continue to increase their reserves, this could be a contributing factor to ongoing gold demand and potentially influencing prices.
• Volatility in consumer demand: High gold prices may lead to temporary pullbacks and greater price sensitivity among traditional buyers, encouraging innovation in product sizes and alloys.
• Growth in silver: In our view, silver has the potential to become the fastest-growing metal segment, driven by its industrial uses (especially in green technology) and investment interest.
• Digitalisation and product innovation: Fintech advances, improved data services, and tailored bullion products will continue, driven by regionally nuanced investor requirements and increasing institutional participation.

To get in touch with the Finalto Asia office, or to be connected with a Finalto team in your region, please email sales@finalto.com. You can also contact us via our website.

This article is for informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to trade. Trading in leveraged products, including the synthetic instruments and contracts for difference mentioned, carries a high level of risk and may not be suitable for all investors. You should ensure you fully understand the risks involved and seek independent advice if necessary. Past performance is not an indication of future results.

Finalto Asia provides capital markets products and services strictly to accredited, expert, and institutional investors. This communication is not intended for retail investors and should not be construed as an offer to the public.