New Fund to Facilitate Central Bank Gold Buying

Published: May 27, 2015 09:58

Save

Xinhuanet reported that a gold sector fund was set up this past weekend during an investment and trade forum in Xi’an, China.

Monday May 25, 2015, 9:42am PDT

Xinhuanet reported that a gold sector fund was set up this past weekend during an investment and trade forum in Xi’an, China. The fund will be led by the Shanghai Gold Exchange (SGE) and is expected to raise US$16.1 billion over three phases.

As quoted in the market news:

"About 60 countries have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal, according to the SGE.

'China does not have a big say in gold pricing because it accounts for a small share of international gold trade,’ said Tang Xisheng of the Industrial Fund Management Co. ‘Therefore, the Chinese government seeks to increase the influence of RMB in gold pricing by opening the domestic gold market to international investors.’

According to Tang, the fund will invest in gold mining in countries along the Silk Road, which will increase exploration in countries such as Afghanistan and Kazakhstan.

Click here to read the full Xinuanet report.

china gold

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 mins ago

Policy props up China’s die-cast zinc alloy demand at home, but export orders shift: how strong is the peak season?

According to SMM data, die-cast zinc alloy operating rates stood at 51.8% as of last week. Looking at March expectations, the industry's operating performance is projected to decline by approximately 7 percentage points year-on-year. The main reasons for the decline in operating rates are as follows

11 mins ago

6 hours ago

SHFE Zinc Posted a Five-Day Winning Streak, with Its Center Edging Up Slightly [SMM Zinc Morning Comment]

[SMM Zinc Morning Comment] Last Friday, SHFE zinc recorded a five-day winning streak, with support provided by the 5-day and 10-day daily average lines below. In April, routine maintenance at smelters increased, and inventory continued destocking, while zinc fundamentals improved......

6 hours ago

Zinc Fundamentals Improved, but Weak Macro Sentiment Limited Its Upside [SMM Morning Meeting Summary]

[SMM Morning Meeting Summary: Zinc Fundamentals Improved Slightly, but Weak Macro Sentiment Limited Its Gains] Last Friday, LME zinc posted a small bullish candlestick, with the 10-day moving average above acting as resistance. Although the risk of an escalation in the geopolitical conflict in the Middle East remained last Friday and macro sentiment was weak, concerns over mine-side energy supply arising from such an escalation also increased......

6 hours ago