Gold Prices Remain Steady Despite China's Banking Changes
China's major banks have stopped offering some precious-metals trading services to individual customers by July 24, sparking claims that the country was banning 'paper gold', forcing investors into physical bullion and preparing to send prices sharply higher.
However, despite the deadline passing without a surge in gold prices, several analysts believe that Chinese buying has been transferred from financial products into physical hands, which could aid prices in the long run.
The Shanghai Gold Exchange remains open, and futures continue trading on the Shanghai Futures Exchange. Customers can still purchase bars and coins, use gold savings plans, and invest through gold-backed ETFs.
According to Jeffrey Christian, managing partner at commodities consultancy CPM Group, 'the move is the completion of a five-year retreat from risky retail leveraged products, rather than a transformation of global gold trading.'