(Yicai) Nov. 28 -- Several Chinese commercial lenders have raised the risk level of their precious metal products to increase their investment thresholds because of the surging volatility of the global gold market.

The investments commercial banks have recently increased the risk levels of are all physical gold products, Yicai noticed. Most lenders do not allow new account openings for gold investment and only let existing accounts close positions, not increase them.

The gold market has been extremely volatile this year because of geopolitical conflicts and expectations for interest rate cuts. The COMEX Gold Futures soared over 28 percent so far this year. However, it fell 6.5 percent in the first half of November and sharply rebounded soon after.

Chinese banks are also gradually phasing out investment products tracking the commodity futures market, enhancing risk management measures, introducing higher entry barriers for investors, hiking minimum investment amounts, and requiring investors to re-assess their risk tolerance, Yicai learned from an insider.

For example, after raising the risk level of its precious metal products, major state-owned lender China Construction Bank stopped allowing customers rated conservative and cautious in terms of risk tolerance to invest in certain physical gold products.

The lenders may also gradually cancel trading-type precious metal investment products, keeping only those with relatively low-risk levels, such as physical investments, the insider added.

Editors: Tang Shihua, Futura Costaglione