OCBC Launches Physical Gold Trading in Singapore, June 09

Singapore’s Oversea-Chinese Banking Corporation (OCBC) is launching physical gold trading and custody services for institutional investors and wealthy private banking clients starting June 10. The move capitalizes on surging global demand for bullion amid geopolitical uncertainty. Bank of Singapore clients previously held gold through a US-based entity but will now transact entirely within Singapore, reflecting a broader shift toward local custody arrangements.

Global Gold Demand Surges as Investors Seek Safety

Global demand for gold bars rose 50% in the first quarter of 2026 compared to a year earlier, according to World Gold Council data cited by OCBC. Bank of Singapore clients have increased their physical gold holdings by more than 40% since the end of 2025, with ultra-high-net-worth clients accounting for the majority of these assets. Clients are shifting toward local custody arrangements and Singapore-based transactions amid heightened geopolitical tensions and macroeconomic uncertainty.

Two Bar Sizes Available for Clients

OCBC will offer two types of allocated gold bars: large bars weighing approximately 400 troy ounces (12.4 kilograms) and one-kilogram bars. Each bar is individually identifiable through serial numbers, giving clients direct ownership of specific units rather than a claim on a pooled reserve. The entire trading and custodial chain operates from a Singapore-based vault, eliminating the need for US-based transactions.

Expansion Beyond Paper Gold Offerings

The physical gold service extends OCBC’s existing precious metals business, which already includes fractional gold and silver investments through the OCBC app and the LionGlobal Singapore Physical Gold Fund launched in 2025. Kenneth Lai, head of global markets at OCBC, said the bank plans to expand the service to additional client segments over time. The move positions Singapore as a regional hub for gold trading as neighboring Asean economies tighten regulations on precious metals.

Strategic Shift Toward Singapore as Safe Haven

Bank of Singapore clients previously transacted in physical gold through a US-based entity but have increasingly expressed preference for holding bullion locally. Jason Moo, CEO of Bank of Singapore, stated that clients are “thinking more deeply about who they transact with, and where their gold is stored” amid market volatility. The launch reflects broader efforts by Singapore’s financial sector to strengthen its position as a regional precious-metals hub for central banks and institutional investors.

Final Thoughts

OCBC’s entry into physical gold trading capitalizes on a 50% surge in global bullion demand and reflects client preference for Singapore-based custody. The service targets wealthy and institutional clients seeking safe-haven assets amid geopolitical uncertainty.

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