Singapore aims to set gold price with its benchmark

The Singapore Bullion Market Association (SBMA) announced the launch of a joint feasibility study between the SBMA, LBMA and ICE Benchmark Administration (IBA). The study will focus on customers' needs for a LBMA Pre-AM Gold Price at 14:00 Singapore Time (06:00 GMT), Lim Hng Kiang, minister for trade and industry and deputy chairman of the Monetary Authority of Singapore, told an industry conference on Monday.

"We hope to make a reputable gold benchmark mechanism in London available to Asian users," SBMA's chief executive, Albert Cheng, told Reuters. Cheng said a feasibility study is being carried out, and "if there's enough interest, the IBA will consider launching it early next year."
This initiative is supported by International Enterprise (IE) Singapore, the government agency driving international trade. 

The study "is an important first step towards establishing a U.S. dollar price discovery mechanism for gold during Asian business hours," said Lim. "When in place, it will facilitate the timely tracking of Asian demand and allow participants in Asia to settle their trades within the same business day." ICE Benchmark Administration (IBA) currently conducts the LBMA gold price auction twice daily at 10:30 and 15:00 London time, with the price set in dollars per fine troy ounce.

On Sunday at a workshop hosted by the China Gold & Silver Exchange and Singapore Bullion Market Association, participants talked of how Asia should be the price maker rather than a price taker. Accordingg to a CGSE representative, the region needs to develop partnerships to assume its "rightful role as the price maker in the global market".