Bank of China to Help Set Gold Prices in London

Bloomberg reported that Bank of China will join the London Gold Fix to help set prices in London’s gold market.

As quoted in the press release:

Bank of China Ltd. will join lenders including Goldman Sachs Group Inc. and Barclays Plc that run the twice-daily auction system for pricing gold, according to a statement from the London Bullion Market Association on Tuesday. The process, which dates back to 1919, sets a benchmark level for gold that’s used by mining companies, refiners and hedge funds.

China, the world’s second-largest economy, is expanding its presence in gold and currency markets worldwide as the country seeks to make the yuan a viable competitor for the dollar. An International Monetary Fund team is visiting China this month to discuss including the yuan in the IMF’s Special Drawing Rights basket of reserve currencies.

Click here to read the full Bloomberg article.