China starts fixing gold price twice a day in an attempt to establish regional benchmark

BEIJING: China, the world’s biggest producer and consumer of gold, started a twice-daily price fixing on Tuesday in an attempt to establish a regional benchmark and bolster its influence in the global market.

The Shanghai Gold Exchange set the price at 256.92 yuan a gram ($1,233.85 an ounce) at the 10:30 am session after members of the exchange submitted buy and sell orders for metal of 99.99% purity. Members include Chinese banks, jewellers, miners and the local units of Standard Chartered and Australia & New Zealand Banking Group.

China has overtaken India as the largest consumer as rising incomes and surging economic growth boosted purchases of jewellery, bars and coins. The country’s plans to develop a benchmark to rival the twicedaily London auction may be hampered by capital controls.