A Chinese gold fix is planned to launch this year on the state-run Shanghai Gold Exchange, Reuters reported, citing unnamed sources. The yuan-denominated benchmark would be derived from a new 1kg contract, according to a senior source directly involved in the process, the success of which would add to the pressure on London’s gold fix–under scrutiny due to alleged price manipulation–and grant China, top global producer of the metal and second-biggest bullion consumer, the greater price-setting power for bullion to which it feels entitled on account of its prodigious market weight.
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