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China advances gold exchange launch, Singapore delays contract
China will launch its international gold exchange 11 days ahead of schedule, sources said on Tuesday, racing ahead in the scramble to set up an Asian bullion benchmark as rival Singapore is forced to delay its gold contract due to technical issues.
Asia, home to the world's top two gold buyers - China and India has been clamoring to gain pricing power over the metal and challenge the dominance of London and New York in trading.
The state-run Shanghai Gold Exchange (SGE) will launch the global gold bourse in the Shanghai free-trade zone on Thursday, two sources familiar with the matter told Reuters. The SGE had initially planned the launch for Sept. 29.
At http://www.reuters.com/article/2014/09/16/us-china-gold-contract-idUSKBN0HB17F20140916
My comment:
Let's hope this physical gold exchange where contracts are settled in deliverable physical gold starts to change the dynamics of gold pricing, which is currently dominated by naked short sales of massive amounts of paper backed by nothing gold in London and New York.
