The London Metal Exchange and the CME Group emerged as contenders in developing an alternative to the London silver price benchmark, or “fix”, after the century-old system for setting the globally recognized price is disbanded in August.
CME and the LME both told the Wall Street Journal on Thursday that they were working with the London Bullion Market Association (LBMA) and the precious metals industry to find an electronic-based solution. Earlier this month, London Silver Market Fixing Limited said it would stop administering the benchmark on Aug. 14.
“We are working closely with the precious metals industry and the LBMA to reduce market disruption by helping to find a robust transaction-based way to set the daily spot price, so the markets can continue to work efficiently and seamlessly,” Harriet Hunnable, CME managing director of metals products, said in a statement.
Meanwhile, the LME said it had received numerous requests from industrial and financial players to provide a new solution.
Indian gold bullion saw the biggest price decline of the day, dropping 1.0 percent to close at INR 25,885 ($439.10) per 10 grams on Thursday, May 29. Chinese gold bullion finished the day down 0.5 percent to CNY 253.55 ($40.56) per gram. At $1,259 per ounce, US gold bullion fell 0.4 percent yesterday. Japanese gold bullion stayed flat at around JPY 4,143 ($40.72) per gram.
Indian silver closed 0.8 percent lower at INR 40,865 ($693.21) per kilogram. Chinese silver finished the day up 0.2 percent to CNY 4,160 ($665.40) per kilogram. US silver held its value on Thursday at $19.02 per ounce. At JPY 630.00 ($6.19) per 10 grams, the price of Japanese silver was essentially unchanged.
The price of US platinum bar declined 0.8 percent to $1,449 per ounce. Chinese platinum bar ended the day at CNY 311.00 ($49.75) per gram, after the 0.3 percent drop yesterday. The price of Japanese platinum bar held steady at JPY 4,805 ($47.23) per gram.
US palladium bar gained 0.5 percent to finish at $835.00 per ounce. For the fifth consecutive day, the price of Japanese palladium bar held flat at JPY 2,687 ($26.41) per gram. The price of Chinese palladium bar remained essentially flat at CNY 189.00 ($30.23) per gram.