Singapore seeks gold-hub role with Shanghai as demand shifts

SINGAPORE: Singapore will introduce a physical gold contract this year, while Shanghai starts international bullion trading, highlighting a push in the biggest consuming region to establish new price benchmarks as demand shifts east.

Singapore’s kilobar contract for 25 kilograms of 99.99% purity may begin as soon as September, according to a statement from Singapore Exchange (SGX), the World Gold Council, the government’s trade-promotion body and the Singapore Bullion Market Association at an industry conference.

The Shanghai Gold Exchange plans to start its contract priced and settled in yuan in the third quarter, Chairman Xu Luode said.

Asian exchanges are developing bullion products as more of the world’s gold is processed and consumed in the region and the industry discusses changes to the century-old fixing benchmark in London.