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Bring it On

Posted by ipso facto @ 10:48 on April 13, 2016  

China Gold Fix to create greater price transparency

China is set to extend its influence in the gold market with the launch of a highly anticipated yuan-denominated gold fix on April 19.

“As the largest producer and consumer of gold, it is only logical that they develop the infrastructure to trade, price and provide liquidity for gold in their own currency,” said John Butler, vice president and head of wealth services at GoldMoney.

Seamus Donoghue, chief executive officer of Singapore-based Allocated Bullion Solutions said the gold fix also provides the People’s Bank of China with the capability to control and stabilise the gold price.

Like the London Gold Fix, the Shanghai Gold Exchange’s (SGE) benchmark price will be set twice per business day and both local and foreign banks will be allowed to trade the contract. It is understood that clients of foreign banks will be allowed to trade anonymously whereas those of domestic banks will not enjoy the same privilege. In China, the initial price for the first auction will be determined by a ‘trimmed arithmetic average of price-setting members’ inputs’ whereas the London auctions kick off using a price selected by an independent chairperson, Donoghue said.

cont. http://www.mineweb.com/news/gold/china-gold-fix-to-create-greater-price-transparency/

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.