Hong Kong and Singapore are expanding their gold trading ecosystems, but officials from both regions insist this growth will complement rather than compete with established Western hubs. Representatives from these Asian financial centers spoke at a precious metals conference, emphasizing that global gold market liquidity is robust enough to support both emerging and traditional trading centers.
Hong Kong is positioning itself as a connector between the London Bullion Market Association (LBMA) and Asian liquidity. The region plans to launch the first central clearing and settlement system for gold in early 2027 and aims to have more than 2,000 metric tons of gold storage capacity within two years. Christopher Hui, secretary for financial services and the treasury in the Hong Kong government, highlighted the territory's role in linking LBMA standards with Asian markets. Hong Kong also recently launched a “Delivery Connect” program with the Shanghai Gold Exchange to facilitate cross-border gold settlements.
Singapore is also expanding its gold trading infrastructure, starting central bank gold-vaulting services this month and establishing an over-the-counter (OTC) gold clearing system. The city-state already has commercial vaulting capacity of more than 2,000 metric tons. Lim Cheng Khai, head of the financial markets development department at the Monetary Authority of Singapore, noted that the demand from sovereigns, institutional investors, and high net worth individuals is driving this expansion.
Both Hong Kong and Singapore emphasized their aim to complement price discovery in the Asian time zone rather than displace existing Western markets. Officials from both regions underscored the growing demand for diversified gold holding storage, positioning their hubs to build a comprehensive ecosystem to meet this need.