April 19, 2016, TuesdayCHINA will launch a new contract today to set a “benchmark” price for gold bullion in the world’s biggest producer and consumer of gold, as part of efforts to increase its influence in pricing of the precious metal.The yuan-denominated gold fix will be launched on the Shanghai Gold Exchange this morning, with the benchmark price at 257.97 yuan (US$39.83) per gram, said a statement released by the exchange yesterday.hxxp://www.shanghaidaily.com/business/energy/China-to-launch-gold-benchmark/shdaily.shtml
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Today we see the start of the Yuan Gold Fixing in Shanghai.To get the price in dollars, we have to take the SGE gold price and multiply it by 32.1507465 to get a price per ounce.Then divide this price by the $: Yuan exchange rate at the time of the Fix.1.00 USD = 6.47550 CNYhxxp://www.xe.com/currencyconverter/convert/?From=USD&To=CNYeg 257.97 yuan/gm (quoted in the Shanghai Daily article above) = 8293.9279 yuan/oz = $1280/oz** This would be a near $50 premium on the current gold price quote of $1231/oz **
MML Price at posting:
83.0¢ Sentiment: Buy Disclosure: Held
