Gold getting KILLED .....................But

[Mega]

Bank of China becomes first Asian firm to help set London's gold price

The bank will be instrumental in determining the price of bullion paid in London's gold market

Facebook 2

Twitter 4

Pinterest 0

LinkedIn 0

Share 6

Email

Investors buy gold as a hedge against inflation and volatility in currencies Photo: Reuters









Ben Collins tries to crash the Subaru Outback Watch former Top Gear Stig testing the new EyeSight technology, which slams on the brakes

Sponsored by Subaru



7:01PM BST 16 Jun 2015
1 Comment


A Chinese bank will become the first Asian firm in history to join a group of Western institutions that help set the price of gold in the London market.


Bank of China has gained entry to the London Bullion Market Association gold price auction, which takes place twice a day and is widely used as a benchmark by miners, traders and consumers.

China is the world’s largest producer and consumer of bullion, yet it has never played a major role in setting the price of gold.



^{China and India lead the world in terms of demand for gold}

“Bank of China joined LBMA as an initial member in 1987, and has been actively participating in the gold trading business in London for over 40,” said Yu Sun, general manager of Bank of China’s London branch.

He added that the bank’s inclusion in the auction should allow the gold price to better reflect supply and demand in the People’s Republic, which is a major market for the precious metal.
The way the London gold price is determined changed this year in the wake of the Libor-rigging scandal.

• Don’t waste time fixing gold fix, it’s obsolete

• Thorough reform of gold fix needed, says World Gold Council

• Gold fix to be supervised after rigging allegations

A new electronic auction went live in March as a more transparent alternative to the century-old London Gold Fix.

Under the old system, which was introduced in 1919, banks simply called each other on the telephone to set the price each day.

Now, tighter regulation of systemically important benchmarks, such as gold and Libor, makes them less vulnerable to manipulation.
The Financial Conduct Authority fined Barclays £26m in May 2014 for failings that saw a trader attempt to manipulate the gold fix.

LBMA gold price: 1-year change

16/06/2015	1177.75
15/06/2015	1181.4
12/06/2015	1182.8
11/06/2015	1178.5
10/06/2015	1188.5
09/06/2015	1177.4
08/06/2015	1172.8
05/06/2015	1164.6
04/06/2015	1176
03/06/2015	1190
02/06/2015	1192.8
01/06/2015	1199.9
29/05/2015	1191.4
28/05/2015	1185
27/05/2015	1185.85
26/05/2015	1185.4
22/05/2015	1204.1
21/05/2015	1205
20/05/2015	1210.5
19/05/2015	1214.3
18/05/2015	1223.5
15/05/2015	1220.5
14/05/2015	1225
13/05/2015	1210.5
12/05/2015	1191.5
11/05/2015	1189.25
08/05/2015	1186
07/05/2015	1187
06/05/2015	1194.25
05/05/2015	1197
01/05/2015	1175.95
30/04/2015	1180.25
29/04/2015	1209
28/04/2015	1209
27/04/2015	1200
24/04/2015	1183
23/04/2015	1185.75
22/04/2015	1189.25
21/04/2015	1195.3
20/04/2015	1196.5
17/04/2015	1203.35
16/04/2015	1204.35
15/04/2015	1192.9
14/04/2015	1194.75
13/04/2015	1198.9
10/04/2015	1207.35
09/04/2015	1194.8
08/04/2015	1207.25
07/04/2015	1211
02/04/2015	1198.5
01/04/2015	1197
31/03/2015	1187
30/03/2015	1185.5
27/03/2015	1195.75
26/03/2015	1203.15
25/03/2015	1195.6
24/03/2015	1191.5
23/03/2015	1186.25
20/03/2015	1183.1
19/03/2015	1166
18/03/2015	1147.25
17/03/2015	1150.75
16/03/2015	1150.75
13/03/2015	1152
12/03/2015	1152.25
11/03/2015	1150
10/03/2015	1162
09/03/2015	1168.5
06/03/2015	1175.75
05/03/2015	1202
04/03/2015	1199.5
03/03/2015	1212.75
02/03/2015	1212.5
27/02/2015	1214
26/02/2015	1208.25
25/02/2015	1204.75
24/02/2015	1192.5
23/02/2015	1204.5
20/02/2015	1208.25
19/02/2015	1209.5
18/02/2015	1206
17/02/2015	1209.5
16/02/2015	1229.25
13/02/2015	1232.5
12/02/2015	1222.5
11/02/2015	1223.75
10/02/2015	1234.5
09/02/2015	1238.5
06/02/2015	1241
05/02/2015	1259.25
04/02/2015	1268.5
03/02/2015	1264.25
02/02/2015	1272.5
30/01/2015	1260.25
29/01/2015	1268.75
28/01/2015	1288
27/01/2015	1288.5
26/01/2015	1281.25
23/01/2015	1294.75
22/01/2015	1295.75
21/01/2015	1293.5
20/01/2015	1288.75
19/01/2015	1273.75
16/01/2015	1277.5
15/01/2015	1259
14/01/2015	1235
13/01/2015	1231.5
12/01/2015	1226.5
09/01/2015	1217.75
08/01/2015	1215.5
07/01/2015	1210.5
06/01/2015	1210.25
05/01/2015	1200
02/01/2015	1172
30/12/2014	1206
29/12/2014	1185.5
23/12/2014	1175.75
22/12/2014	1195.25
19/12/2014	1195.5
18/12/2014	1199
17/12/2014	1195.75
16/12/2014	1202.5
15/12/2014	1209.25
12/12/2014	1217
11/12/2014	1216.25
10/12/2014	1229
09/12/2014	1227
08/12/2014	1193
05/12/2014	1194
04/12/2014	1209
03/12/2014	1204.75
02/12/2014	1195
01/12/2014	1194
28/11/2014	1182.75
27/11/2014	1194.75
26/11/2014	1197.5
25/11/2014	1199
24/11/2014	1197.5
21/11/2014	1203.75
20/11/2014	1190
19/11/2014	1196
18/11/2014	1192.75
17/11/2014	1182.5
14/11/2014	1169
13/11/2014	1161.75
12/11/2014	1164.5
11/11/2014	1156.5
10/11/2014	1162
07/11/2014	1154.5
06/11/2014	1145
05/11/2014	1142
04/11/2014	1166.5
03/11/2014	1167.75
31/10/2014	1164.25
30/10/2014	1202
29/10/2014	1223.5
28/10/2014	1229.25
27/10/2014	1228.75
24/10/2014	1232.75
23/10/2014	1232.75
22/10/2014	1243.75
21/10/2014	1250.25
20/10/2014	1244.5
17/10/2014	1234.25
16/10/2014	1237.75
15/10/2014	1237.5
14/10/2014	1234.75
13/10/2014	1229
10/10/2014	1219
09/10/2014	1226.75
08/10/2014	1217
07/10/2014	1210.5
06/10/2014	1195.75
03/10/2014	1195
02/10/2014	1211.75
01/10/2014	1216.5
30/09/2014	1216.5
29/09/2014	1219.5
26/09/2014	1213.75
25/09/2014	1213.75
24/09/2014	1217.25
23/09/2014	1222
22/09/2014	1213.5
19/09/2014	1219.75
18/09/2014	1220.5
17/09/2014	1236
16/09/2014	1232.25
15/09/2014	1234.25
12/09/2014	1231.5
11/09/2014	1241.25
10/09/2014	1251
09/09/2014	1255.75
08/09/2014	1259
05/09/2014	1266
04/09/2014	1271.5
03/09/2014	1265.5
02/09/2014	1267
01/09/2014	1286.5
29/08/2014	1285.75
28/08/2014	1292
27/08/2014	1282.75
26/08/2014	1286
22/08/2014	1277.25
21/08/2014	1275.25
20/08/2014	1295
19/08/2014	1296.5
18/08/2014	1296.75
15/08/2014	1296
14/08/2014	1313.5
13/08/2014	1312
12/08/2014	1315.75
11/08/2014	1307.25
08/08/2014	1309.75
07/08/2014	1305.25
06/08/2014	1306.5
05/08/2014	1284.75
04/08/2014	1290.5
01/08/2014	1291.25
31/07/2014	1285.25
30/07/2014	1294.5
29/07/2014	1299.25
28/07/2014	1304.5
25/07/2014	1294.75
24/07/2014	1292.75
23/07/2014	1308
22/07/2014	1310.25
21/07/2014	1311.5
18/07/2014	1307.25
17/07/2014	1302.5
16/07/2014	1301
15/07/2014	1310
14/07/2014	1306
11/07/2014	1335
10/07/2014	1340.25
09/07/2014	1322.75
08/07/2014	1323
07/07/2014	1313
04/07/2014	1319.25
03/07/2014	1317.5
02/07/2014	1326.5
01/07/2014	1327.5
30/06/2014	1315
27/06/2014	1317.5
26/06/2014	1311.75
25/06/2014	1316.75
24/06/2014	1318.5
23/06/2014	1313.5
20/06/2014	1312.5
19/06/2014	1293
18/06/2014	1269.75
17/06/2014	1267.5
16/06/2014	1276.25

Bloomberg Finbarr Hutcheson, president of ICE Benchmark Administration, which administers the auction, said: “The growth in daily volumes coupled with the increase in participation from around the globe, demonstrates strong market support for the independent governance and oversight we have implemented to bring transparency and trust to the gold auction.”

Since the changes, the number of participants in the gold auction has doubled to eight, although more are expected to join.

The other seven members include Barclays, Goldman Sachs, HSBC Bank, JPMorgan Chase London, Bank of Nova Scotia, Societe Generale and UBS.

London is the world’s largest market for over-the-counter gold trading with an average of $20.2bn (£12.9bn) in the metal changing hands each day in April, according to Bloomberg.
However, China is widely believed to be looking to establish its own benchmark system to rival London as a major hub for gold trading.

It is also thought that the government is stockpiling gold as part of a plan to diversify its massive foreign-exchange reserves.