China has shed light on the date of launching new gold fixing
It should be reminded that until March 20 of the current year, gold prices were determined by the London Gold Fixing. Later on, this nearly century-old system was replaced by an improved one which ensured more transparent setting of gold prices and other precious metals.
The growing importance of the Shanghai Gold Exchange in the gold market made everybody expect an answer for this change, and sure, it was not slow in coming. The Shanghai Gold Exchange's reply to London is the creation of an international platform which will be launched on July 10, 2015, as officially stated by the vice-president of the Shanghai Gold Exchange, Shen Gang.
The vice-president also claimed there are negotiations with the Dubai Gold and Commodities Exchange with the purpose to add yuan as a new currency for trading in the Dubai trading platform.
Reuters reports that the test launch of the Chinese fixing was already conducted in April, 2015 and the Shanghai Gold Exchange will regulate the process. Also, the largest Chinese banks and several foreign banks will be the participants of the fixing. Thus, China, one of the most prominent gold consumers in the world will take part in determining gold prices.
The experts points out that the Chinese fixing can turn out to be a serious competitor of the LBMA fixing and during the coexistence of both systems, one of them will end up taking over the other. How the situation will change, time will show.
Don't forget to share this information in your social networks!
