On April 19, China officially validated the rumor and initiated a new Yuan denominated gold price at the Shanghai Gold Exchange (SGE).
Officially setting the opening price at 257.97 Yuan, or $39.87 per gram, China has now thrown down the gauntlet against London and the Comex for control over the global physical gold market.
China launched its yuan-denominated gold benchmark on Tuesday in Shanghai as it seeks to secure more sway in the pricing of the precious metal.
The Shanghai Gold Benchmark Price (code: SHAU), is the quote for trading of 1kg, 99.99 percent purity bullion, denominated in the Chinese yuan and derived from multiple rounds of trading.
The benchmark was set at 257.97 yuan per gram on Tuesday, the Shanghai Gold Exchange (SGE) said in a statement.
The benchmark also lays the foundation for shifting bullion trading in Shanghai from mostly spot to derivatives to increase the appeal of yuan-denominated bullion trading as financial instruments for both domestic and global investors. - People.CN