China to launch yuan denominated gold fix in 2015
Duncan Richardson, News Editor
2 Mar 2015, 11:05 a.m.
China is set to launch a yuan denominated gold fix later this year according to sources close to the matter. China is the world’s second largest consumer of gold and the launch of the fix will enable China to have a greater say over the pricing of the yellow metal. China is also the world biggest miner of gold.
The yuan denominated fix is set to compete directly with the century old London Fix to become the world’s premier centre for price discovery.
The century old London fix has come under increased scrutiny following allegations of price manipulation. Last year Barclays bank was fine £26 million after one of their traders was found guilty of price manipulation.
Last year the Chinese opened the Shanghai gold exchange, which unlike its U.S based competitor the Comex is an exchange based on physical gold and not paper contracts. Many gold analysts believe the yuan dominated gold fix is part of the Shanghai gold exchanges plan to become the world’s leading gold exchange. If successful the Chinese could potentially wrestle power away from the western bullion banks.