China establishes world’s largest gold fund, eyes influence of RMB on gold pricing

SHANGHAI - The Shanghai Gold Exchange (SGE) has established the world’s largest gold fund in China’s northwest city of Xi’an, to involve countries along the ancient Silk Road, according to State-owned media sources in China. About 60 countries are invested in the fund, which will facilitate gold purchases by central banks of member States to increase their gold holdings.

The Chinese Government is seeking to increase the influence of the RMB in gold pricing by opening China’s domestic gold market to international investors.

The Chinese gold fund will also invest in gold mining operations in countries along the Silk Road, increasing exploration in countries such as Afghanistan and Kazakhstan, the reports say. China is the world’s largest gold producer and a major importer of consumer gold. www.webershandwick.cn (ATI).