China’s getting closer to global gold-price domination
The world’s number one gold producer, China, has just made an enormous move toward advancing its vigorous efforts to become a global price leader for this major precious metal.
For instance, on Tuesday, the world’s largest physical gold exchange, the Shanghai Gold Exchange officially launched the Shanghai Gold Fix. That’s a twice-daily price fixing for gold per gram. The Shanghai Gold Fix is denominated in the Yuan.
Most financial analysts agree that the whole significance of this move shouldn’t be understated, as it’s a huge step toward controlling the global gold price.
Tuesday’s morning fix appeared to be 256.92 Yuan a gram or approximately $1,234.05 per ounce, while the afternoon fix stuck to 257.29 Yuan or simply $1,236 per ounce.
The Shanghai Gold Exchange has already listed up to eighteen institutions, such as the China Construction Bank or the Bank of China as market makers for the newly released fix.
By the way, there’re other crucial structural changes made by this Asian country, which drop a hint at an inevitable gold-price domination. For instance, last year the Bank of China officially joined the bunch of lenders, setting the London Bullion Market Association’s gold price benchmark. As a result, the historical London Gold Fix was replaced by the LBMA.