World Gold Council’s Take on China’s New Gold Fix

from Kitco NEWS

China’s push for more control in the gold market was seen with the launch of its much anticipated yuan-denominated gold price fix on Tuesday – the Shanghai Gold Benchmark Price. Will China become the new gold hub? According to the World Gold Council, this move simply reflects the country’s growing appetite for the metal. ‘We view this as a stepping stone to a multi-access trading market that will consist of London, New York and Shanghai,’ Greg Collett, director of investment products for the WGC, told Kitco News. The new gold fix was launched by the Shanghai Gold Exchange, with prices set twice daily. Wednesday, the Shanghai Gold Benchmark afternoon price was set at 256.97 yuan ($39.72) per gram. Collett also commented on investor demand for the metal, which has surged since the start of the year. He highlighted GLD, the world’s largest gold-backed exchange-traded fund, and its rise from $22 billion to $32 billion in assets under management this year.

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