China has approached foreign banks and gold producers to participate in a global gold exchange in Shanghai, people familiar with the matter said, as the world’s top producer and importer of the metal seeks greater influence over pricing, Reuters reported.
The Shanghai Gold Exchange (SGE) got the go ahead from the central bank last week to launch a global trading platform in the city’s pilot free trade zone, a move that could challenge the dominance of New York and London in gold trade and pricing.
This is an opportune time for Beijing to open an exchanges plans to open an exchange as the benchmark price-setting process for precious metals is under scrutiny. Barclays PLC became the first bank to be fined over attempted manipulation of the 95-year-old benchmark London gold market daily “fix” last week.
Decreasing 1.3 percent made Indian gold bullion the biggest mover of the day, finishing at INR 26,821 ($459.01) per 10 grams on Monday, May 26. The price of US gold bullion showed little movement last Friday at $1,293 per ounce. Chinese gold bullion held its value last Friday at CNY 259.78 ($41.66) per gram. The price of Japanese gold bullion remained essentially flat at JPY 4,227 ($41.45) per gram.
Indian silver finished the day down 1.0 percent to INR 41,775 ($714.92) per kilogram. Chinese silver saw its price rise 0.2 percent to CNY 4,175 ($669.45) per kilogram. The price of US silver fell 0.2 percent to $19.44 per ounce. Japanese silver saw little change in its price last Friday at JPY 636.00 ($6.24) per 10 grams.
Weakening prices followed two days of improvement as the price of US platinum bar dropped 0.9 percent to $1,475 per ounce. Chinese platinum bar stayed flat at around CNY 315.00 ($50.51) per gram. After a couple of days of improving prices, the price of Japanese platinum bar held steady at JPY 4,853 ($47.59).
Following two days of rising prices, the price of Chinese palladium bar dropped 0.5 percent to CNY 190.00 ($30.47) per gram. The price of US palladium bar closed at $831.00 per ounce. Following a couple days of improvement, the metal’s price weakened by 0.2 percent. The price of Japanese palladium bar remained essentially flat at JPY 2,687 ($26.35) per gram.