China seeks to establish own gold benchmark

AFP, SHANGHAI: China announ-ced its first-ever “fix” for the gold price yesterday, as the world’s biggest producer and consumer of the yellow metal seeks to establish its own benchmark.
The Shanghai Gold Exchange set the price for 99.99 per cent gold at 256.92 yuan ($39.71) per gram, it said on its website. It was marginally higher than the international price at the time, according to figures from goldprice.org.
“China needs a gold benchmark that reflects local market flows and reduces gold’s price dependency on the US dollar,” Roland Wang, managing director of industry group the World Gold Council in China, said in a statement.
“An Asian-focussed, yuan-denominated benchmark will significantly increase the liquidity and efficiency of the gold price,” he said.
The industry group has put mainland China’s demand for gold at 984.5 tonnes last year, with jewellery at 783.5 tonnes, and bars and coins at 201 tonnes.

China seeks to establish own gold benchmark

AFP, SHANGHAI: China announ-ced its first-ever fix for the gold price yesterday, as the worlds biggest producer and consumer of the yellow metal seeks to establish its own benchmark. The Shanghai Gold Exchange set the price for 99.99 per cent gold at 256.92 yuan ($39.71) per gram, it said on its website. It was marginally higher than the international price at the time, according to figures from goldprice.org. China needs a gold benchmark that reflects local market flows and reduces golds price dependency on the US dollar, Roland Wang, managing director of industry group the World Gold Council in China, said in a statement. An Asian-focussed, yuan-denominated benchmark will significantly increase the liquidity and efficiency of the gold price, he said. The industry group has put mainland Chinas demand for gold at 984.5 tonnes last year, with jewellery at 783.5 tonnes, and bars and coins at 201 tonnes.