Looks like China will have direct influence on London Gold fix - Chinese government owns majority interest in China Construction Bank that will join the twice-daily electronic auction process to set the benchmark price of gold, its operator Intercontinental Exchange said in a statement on Thursday.
CCB on Wednesday confirmed it would be the second Chinese company to gain access to the 138-year old London Metal Exchange's trading floor with the acquisition of a majority stake in UK metals trading firm Metdist Trading Ltd.
Austrian Central Banks wants to repratriat 50% of their gold back from the Bank of England, worth about $3.5 billion but it will take 5 years. Again this is ludicruis, as it means the physical gold is simply not available, it was sold a long time ago
Kitco intervieded - Peter Mooslechner, executive director of the Österreichische Nationalbank, at the London Bullion Market Association (LBMA) conference in Vienna, to get his take on the matter
‘It was of big importance during the period of the Brenton Woods system…but it has now become part of a much greater monetary and economic area,’ he noted. ‘It has transformed into something like the basic part of reserves to be held as a liquidity buffer or for security reasons, but not so much as an active part of management of gold reserves anymore,"
The London Bullion Market Association, which oversees trading and is holding its annual conference starting Monday, has invited proposals on how to improve the city's over-the-counter market and has suggested more detailed reporting of transactions. At the same time, the World Gold Council has also agreed with five banks to talk about starting standardized central clearing and listed derivatives.
London's market, where custom deals are made on delivery times and size, has come under focus as regulators around the world scrutinized commodities trading and lawmakers have pressed for tighter bank controls.