Friday, July 31, 2015

The next step in China determining gold prices initiated as LME accepts Yuan in contract purchases

For owners of physical gold who have been frustrated with the manipulation and falling prices over the past four years, the day of reckoning is slowly coming upon them.  Beginning a few months ago when the London Gold Fix committee invited China to be a member of the daily price fix mechanism, the next step in having price determination move from the West over to Shanghai and Hong Kong is underway as on July 28, the London Metals Exchange (LME) ruled to allow Yuan to be used to settle gold and other commodity metal contracts.
In fact, with a Hong Kong factor purchasing the LME three years ago, it was inevitable that metal contracts would eventually be open for RMB settlement.


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