China will launch a gold exchange open to foreign players for the first time on Thursday, putting the world's top bullion buyer on track to win a race to set the benchmark price in Asia.

The Shanghai Gold Exchange (SGE) will launch its international bourse with eleven yuan-denominated gold contracts, the first of a slew of bullion contracts expected in three other countries in the region before the end of the year.

A successful take-up could see more gold priced and paid for in yuan rather than the U.S. dollar, challenging the traditional dominance of London and New York in trading.