Singapore unveils plans to build Asia gold trading hub

Singapore on Friday announced plans to boost its position as a gold trading centre as investor interest in storing and trading the precious metal grows across the Asia-Pacific region. “Our goal is to anchor high-value activities here, create good jobs for Singaporeans, enhance the resilience and diversity of Singapore’s financial sector, and benefit market participants in Singapore and the region,” said a joint statement issued by the Monetary Authority of Singapore (MAS) and the Singapore Bullion Market Association (SBMA). 
The central bank also plans to develop gold-related capital market products to promote price discovery and build liquidity. Additionally, a new clearing system will be established to support over-the-counter settlement for trading gold locally. These measures aim to create a robust ecosystem for the asset class in the Asia-Pacific region. MAS Deputy Chairman Chee Hong Tat confirmed the plan during a press briefing, noting that the initiative mirrors previous efforts to deepen the city-state's equity markets. The government has established a working group to drive these projects forward. Already an established financial hub, the island state seeks to position itself as a trusted hub for gold trading in the Asia-Pacific.Chee Hong Tat emphasized that the city-state is not betting on short-term price movements but is instead creating an environment where gold trading can flourish. He likened the strategy to planting trees to ensure the ecosystem grows and bears fruit over time.
This move is part of a broader effort to compete with Hong Kong as a regional hub for the precious metal, which recently signed a deal with the Shanghai Gold Exchange to expand its gold market links. Chee Hong Tat noted that Singapore is accustomed to competition and believes there is enough space for both cities to coexist.. The push to become a gold hub follows a historic rally in the precious metal driven by investors seeking alternative stores of wealth. While prices have retreated since the conflict in the Middle East began, central banks including China's have steadily added gold to hedge against US dollar dominance.