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BookmarkBEIJING (BullionStreet): As yet another step towards globalizing it’s gold market, China is about to introduce a night trade market.
According to Shanghai Futures Exchange,an additional 9 p.m. to 2:30 a.m local time trading time to be added to the trading.
Currently the gold and silver trading time is Monday to Friday, 9 a.m. to 11:30 a.m. and 1:30 p.m. to 3 p.m.
Gold and silver prices are closely related to movements in the international market with the prices of spot gold and silver set during the night, Beijing time.
Officials at the Shanghai Futures Exchange said the move would improve pricing and risk management and be more in step with the global market to, in turn, help reduce investor risk
The move gained momentum after gold markets in China failed to respond as expected after the Spring Festival, analysts said.
They said gold market has been sluggish this time around after the Spring Festival. Falling prices have disappointed some investors, while making others happy
Just before the Spring Festival, China domestic gold price was 336 yuan per gram and dropped to 320 yuan per gram after that, they added.
However, many individual investors who expect to sell their gold are destined to wait longer, while many others are eager to buy because they believe the right time has come.
Chinese gold market is witnessing both a boom and a decline these days in line with global scenes,they added.
Experts say the declining gold price is partially due to macroeconomic figure reflecting an optimistic trend. This has prompted global investors to withdraw their capital from the gold market and put it in the stock and currency markets for higher returns. Another reason is that the hedge fund investors have sold off their gold and silver for U.S. dollars.
