by Turd Ferguson
TF Metals Report
Well, Y-Day is here! We’ve waited for years for the Chinese and their Shanghai Gold exchange to offer a competing Price “fix” to the existing structure out of London…and it all starts tomorrow! How will this impact the gold market? At what price will the Shanghai Fix come in?
By about 8:30 London time tomorrow morning (3:30 am EDT), we’ll know. And won’t it be fun to find out? How will this process work? At what price will tomorrow’s yuan-denominated Fix be set?
From a “process” stand point, I don’t suppose it will be radically different. The current spot market will be assessed and a “fix” price will be set. Then, for the next 24 hours, this will be the accepted price for wholesale gold that is transacted in yuan. Come Wednesday, the Fix will be reset to a new price according to market conditions.