Edward Lau, senior dealer at Phillip Nova, said that interest in precious metals has been a key driver of trading activity in Asia, particularly during periods of macro uncertainty, shifting rate expectations and heightened geopolitical risk.

"Gold continues to attract both hedging flows and tactical positioning given its role as a macro hedge, while silver tends to see more directional and higher-beta participation during stronger momentum phases," he said.

One visible shift in trading behaviour is the growing preference for more precise exposure management.

"A broader segment of clients is seeking ways to align position sizes more closely with capital allocation and risk limits," he said.

As a result, there is increasing interest in smaller-sized contracts, which allow participants to scale into positions gradually, deploy margin more efficiently and remain active even as margin requirements adjust higher in response to volatility.

In Asia, this trend is reinforced by the region’s active retail derivatives participation and increasing familiarity with exchange-traded products.

"The combination of volatility, accessibility and tighter risk control is influencing not just what clients trade, but how they structure their trades," said Lau.

He added: "The implication for product innovation is clear: the market is increasingly valuing accessibility, flexibility and position-sizing precision."

As participation broadens across different client segments, there is greater demand for contract formats that lower barriers to entry without compromising the benefits of exchange-traded products such as transparency, liquidity and clearing.

Lau observes that smaller and micro-sized contracts are becoming more relevant in the futures and options space.

"They allow clients to express views, hedge exposures or build positions in a more granular way, which is particularly important in volatile markets or when margin sensitivity is high," he said.

In many cases, he noted, innovation is not only about creating new products, but also about refining contract design so it better matches how clients actually trade.

Going forward, Lau expects product innovation to continue to move toward a more segmented approach serving institutional, professional and retail participants with differentiated contract sizes and use cases.

This trend is likely to remain important in Asia as exchanges and intermediaries focus on growing participation in a sustainable way.

"For Phillip Nova, these developments reinforce our focus on providing product access that reflects evolving trading behaviour, particularly as clients place greater emphasis on flexibility in position sizing and capital management," said Lau.

Precious metals remain an important asset class for many participants, and the growing relevance of smaller contract formats aligns with broader shifts in how exposure is being managed.

"This is reflected in our offering of both the 1oz Gold Futures and the 100oz Silver Futures, contract sizes calibrated to today’s price environment and designed to allow clients to participate meaningfully without taking on outsized notional exposure in a single position," said Lau.

Strategically, this underscores the importance of maintaining a diversified product suite that serves different client segments, from newer market entrants to more experienced traders seeking capital-efficient tools.

"Looking ahead, our growth plans will continue to be guided by client demand, product relevance and regional market developments," said Lau. "As trading patterns evolve, we see opportunities to deepen engagement through broader product access, enhanced market connectivity and continued client support."

The National Stock Exchange of India on Monday launched electronic gold receipts to bridge the gap between physical gold and financial markets by offering a regulated, secure and technology-driven platform for trading the precious metal.

Dubai Gold & Commodities Exchange's commercial director outlined plans to introduce a same-day (T+0) gold bar contract, as well as a small-denomination product designed to broaden retail participation.