Loading ...Gold Tumbles To 2014 Lows As China Unveils Anti-Rigging Benchmark
Submitted by Tyler Durden on 09/18/2014 08:32 -0400
With a Fed hinting at exit strategies, gold has tumbled to 2014 lows (and almost in the red year-to-date) as traders apparently forget Japan, China, and European central banks continue to (or are set to) print more money into the global reflation trade. It appears that as the West continues to sell ‘paper’ gold, the East remains enamnored as the PBOC announced this morning:
- *CHINA TO FORM SHANGHAI GOLD BENCHMARK, PBOC GOVERNOR SAYS
- *PBOC CHIEF ZHOU: GOLD MARKET IMPORTANT PART OF FINANCIAL MARKET
- *SHANGHAI GOLD MARKET HAS TO AVOID SYSTEMIC RISK: PBOC’S ZHOU
Furthermore, traders have noted physical buying interest continues in the Asian region as premiums rise in China and India.
As Bloomberg reports, PBOC’s Zhou says Chinese gold market is crucial:
Gold market is important component of financial market and can help diversify financial market, People’s Bank of China Governor Zhou Xiaochuan says at ceremony in Shanghai for Shanghai Gold Exchange.
China to form a “Shanghai gold” benchmark: Zhou
* * *
But for now the price continues to fall…
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Though, as Kitco notes, Asia demand remains strong:
Bernard Sin, global head of precious metals trading with MKS (Switzerland) SA, reported that some physical demand has emerged on the price pullback, particularly in the Asian region.
“The premium has gone up in China to between around $4 to $5; in Hong Kong it’s about $1 to $2,” he said. “In Singapore, it’s about $1.70 to $2. In India, it’s about $6 to $7.”