China has launched a yuan-denominated gold benchmark in a bid to gain more control over the pricing of the metal and boost the nation’s influence in the global bullion market.
In the move that began Tuesday, the first Chinese benchmark price was set at 256.92 yuan a gram (US$1,233.85 an ounce) on the Shanghai Gold Exchange for metal of 99.99 percent purity, Bloomberg News reported.
The price, derived from a 1 kg-contract, will be set twice a day.
Eighteen institutions, including Chinese banks, jewelers, miners and the local units of Standard Chartered and Australia & New Zealand Banking Group, will join the benchmark fixing.
China has overtaken India as the largest consumer of gold as rising incomes and surging economic growth boosted purchases of jewelry, bars and coins.
By establishing a benchmark, China is trying to increase its role in setting global prices and ensure the country’s influence matches its significance as a consumer, an analyst told Bloomberg.
The move is also expected to help plans to develop the yuan’s international use.
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