Lots of chatter that China, on April 19th, will start setting the price of Gold in Yuan out of the Shanghai Physical Only Exchange.

“To date, 10 Chinese banks have announced that they will participate in the benchmark Fix at the SGE but no Western banks have indicated that they will participate. In response to this reluctance, China has threatened that if Western banks do not participate they will loose access to the Chinese gold market (http://www.cnbc.com/2016/01/05/reuters-america-foreign-banks-in-china-could-face-curbs-if-they-snub-gold-benchmark.html).

This lack of Western bullion bank interest in the new SGE Gold Fix is understandable as it would create a conundrum that a participating bank would have to explain if there were two materially different spot gold prices posted daily that could not be arbitraged away: one price for spot gold on the SGE for physical gold and a second price for spot ‘gold’ in London based upon trading paper. The market will then progressively degenerate into a much higher global price for gold as the LBMA is pushed to the sidelines.”

http://www.bulliondesk.com/gold-news/update-china-plans-to-launch-yuan-denominated-gold-fix-april-19-sources-109581/

http://www.thedailyeconomist.com/2016/02/got-karatbars-rumors-emerge-that-china.html

http://www.safehaven.com/article/41072/moving-to-the-post-lbma-era-gold-price-reset-watch-out