S’pore tries again to help Asia set gold price

The Sun (Malaysia) - - SUNBIZ -

SIN­GA­PORE: Sin­ga­pore will study the pos­si­bil­ity of bring­ing the gold bench­mark pric­ing in London to users in Asia, in a move that would also al­low mar­ket par­tic­i­pants in the world’s top con­sum­ing re­gion to help set the price of bullion.

Home to the world’s big­gest buy­ers China and In­dia, Asia’s im­por­tance has been on the rise as the key source of de­mand for gold, but bullion traders in the re­gion are of­ten ex­posed to in­tra­day price volatil­ity and overnight foreign ex­change risks with bench­mark prices cur­rently be­ing set out of London.

The Sin­ga­pore Bullion Mar­ket As­so­ci­a­tion, London Bullion Mar­ket As­so­ci­a­tion and In­ter­con­ti­nen­tal Ex­change Bench­mark Ad­min­is­tra­tion (IBA) will launch a joint fea­si­bil­ity study on the devel­op­ment of “LBMA pre-AM gold price at 2 pm Sin­ga­pore time”, Lim Hng Kiang, min­is­ter for trade and in­dus­try and deputy chair­man of the Mon­e­tary Author­ity of Sin­ga­pore, told an in­dus­try con­fer­ence on yes­ter­day.

The study “is an im­por­tant first step to­wards es­tab­lish­ing a US dol­lar price dis­cov­ery mech­a­nism for gold dur­ing Asian busi­ness hours,” said Lim. – Reuters

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