Gold News: China Launched its own Gold Rating System

Gold News

Gold news: To know the price of spot gold, investors instantly turn to London, the world reference in term of gold. However, sometimes soon, they will also have the possibility to turn to Shanghai. Indeed, on Tuesday, China launched its own rating system for the precious metal in yuan.

gold news
This system marks a key step in the country’s efforts to influence the global gold market as it is the biggest producer but also, since 2013, the first consumer. Last year, China alone absorbed nearly a third of the world demand for gold. The Chinese central bank happens to be one of the most voracious.
Beijing sees this new price of gold in Chinese currency – recorded on the Shanghai Gold Exchange (SGE) – a future reference throughout Asia.  Gold analysts believe that the logic of this new platform is clear: if they can pass directly through China, investors, producers,  and consumers will not have to go through London.
In 2014, China already took a the first step by opening the gold market to foreign investors with the launch of a dozen of futures contracts on the precious metal.

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