Shanghai Gold Trade Passes Record as China Seeks More Sway
By GCRU Gold News on Wednesday, December 3 2014, 22:55 - Permalink
Gold trading on China’s largest physical bullion bourse is already exceeding last year’s record volume as the world’s biggest consumer seeks to exert its influence on the global market.
The volume of all contracts on the Shanghai Gold Exchange, including those in the city’s free-trade zone, was 12,077 metric tons in the 10 months to October, compared with 11,614 tons during all of 2013, according to data on the bourse’s website. This may climb to 17,000 tons by the end of the year, the exchange’s Chairman Xu Luode said at a conference today.
China overtook India as the world’s largest gold user last year while European consumption shrank amid a global flow of gold from west to east. While China vies to extend its influence over the bullion market with new contracts aimed at luring international investors, trading volumes are still a fraction of those in London, where benchmark prices are determined.