This is the script of CNBC's news report for China's CCTV on March 23, Monday.
For the first time, market participants will be able to see the amount of gold that is traded during each auction, and there will be historical records of all trading that can be scrutinized by them and regulators, said Finbarr Hutcheson, president of ICE Benchmark Administration Ltd., a unit of ICE.
The gold fix was set by private telephone conference call between the group of four banks-the system that has been in place since 1919. Starting from last Friday, six banks will participate in the auction to set the new electronic gold price, according to Intercontinental Exchange Inc., which manages the new platform.
Four of the banks-Barclays PLC, HSBC Holdings PLC, Bank of Nova Scotia and Société Générale SA-had participated in the conference call used to determine the daily fixes, a system largely unchanged for nearly a century. The newcomerx unveiled by ICE are Swiss bank UBS AG and Goldman Sachs.
The gold market has a daily turnover of about $150 billion, making it the largest precious-metals market. Much of that is carried out in London, the traditional center for metals trading. A wide range of firms, from mining companies to jewelers, use the daily fixes to buy and sell gold.
The moves were prompted by the intense regulatory scrutiny that arose after investigations showed manipulation of other major global benchmarks such as the London interbank offered rate, or Libor, and currencies.
[Chris Powell] "The banks that are in charge were in the previous fixing. I don't really think this new mechanism is going to have much to show off itself, at least until the chinese banks joining the fix commeittee. They have not done so yet."
The "gold conspiracy" theory is nothing new. Here's what Chris Powell, Secretary of Gold Anti-Trust Action Committee, has to say about his views on central banks and gold market manipulation.
[Chris Powell] Central banks have been always intervening the gold market,
The intervening of gold market is pre-referencing of intervening all markets, it has destroyed the market structure of the US, it's the mechanism for the west exportation to the developing world, it's the mechanism by which all the capital labor, goods services in the world, they are controlled in price for the exportation purpose of the West. It's the traditional mechanism of imperialism. I hope it will be stopped by exposure.
Analysts say the new system would improve the transparency of the gold price, by keeping doors open to more players.The world's second largest economy, China, was expected to participate directly in setting the new price fixing. However, no companies from China have been confirmed, although Chinese banks were among those in talks to take part.
Gold extended gains into a fourth straight session on Monday to trade near its highest in two weeks, boosted by a weaker dollar and caution from the Federal Reserve on the timing of a possible hike in U.S. interest rates.
However, despite the modest gain in bullion prices, data showed that investor sentiment has not improved drastically.
CNBC's Qian Chen, reporting from Singapore.
(English) LUA SUYEAN, SINGAPORE NATIONAL MOURNING FOR LEE KUAN YEW, SAYING:
"Feel so sad, feel so sad because Mr Lee so good, the best in Singapore, I also don't know what to say, this morning at six something, I also don't know, I just know about 0630 I know the news, I so sad, so sad, I got write one card for him."
(English) ROSELINA, SINGAPORE NATIONAL MOURNING FOR LEE KUAN YEW, SAYING:
"The whole of our family are deeply saddened, in fact, yesterday we thought of coming and send some flowers but I guess we are a bit too late. It's affecting the whole family and god bless his soul Mr Lee Kuan Yew, without him we wouldn't be what we are right now."
[HELMAN SITOHANG CEO, Asia Pacific Credit Suisse] "First of all let me say our biggest condolences to the people of Singapore and to the family of lee kuan yew. As you know we have headquaters there so our biggest base in here at Asia Pacific, but its obviously the country will move on I think Lee Kuan Yew has done a marvelous job of setting up a fantastic foundation. My personal opinion is probably one of the best country in the world."
[BAMBANG BRODJONEGORO, Finance Minister, Indonesia] "In Southeast Asia, what we can rememeber mainly from Lee Kuan yew is his emphasis on governance when he ruled Singapore for quite some time so I believe that should be like an example for other leaders in Southeast Asia when 074451 they try to promote their economy."