Goldman Sachs and UBS joined the four existing members of the century-old London Gold Fix in the new London Bullion Market Association (LBMA) Gold Price electronic replacement, LBMA said. China, the world’s largest consumer of gold, has been snubbed.
Goldman and UBS joined Barclays, HSBC, Bank of Nova Scotia and Societe Generale, as participants in the new London Bullion Market Association Gold Price benchmark, LBMA reported on Friday. The first LBMA Gold Price settled at $1,171.75 an ounce under the new system. The electronic gold price replaced a system unchanged for nearly a century.
The world’s second largest economy, China, was expected to participate directly in setting the new price fixing. However, no companies from China have been confirmed, although Chinese banks were among those in talks to take part. Chinese players may be added in the future, Finbarr Hutcheson, president of IBA, was cited as saying at a press meeting in London earlier on Thursday by Bloomberg. No Chinese companies have ever directly participated in the nearly 100-year-old fixing while gold demand in China, last year’s second-biggest bullion buyer, has more than doubled since 2009. The country is expected to consume almost half the world’s gold output by 2020.