Gold prices are down some this morning on news that all but two gold exchanges in China will be closed. Gold exchanges have been popping up like crazy in China as spot prices for gold have soared recently.
“No local authority, institution or individual is allowed to set up gold exchanges,” said the notice dated December 20 and jointly issued by the People’s Bank of China, the Ministry of Public Security and other regulators.
The Shanghai Gold Exchange and the Shanghai Futures Exchange will be left open and China believes will be enough to meet domestic investor demand. Maximize Your Trades With Profitly
Existing exchanges have been informed to stop offering new services. The central bank also said it would lead a team to clear up this problem. They said they will alter or close the gold exchanges and that some people will be under police investigation. One official at a gold exchange told Reuters they have not received any specific instructions.
“But the talk of a crackdown has been going on for a while,” he said. “Of course, this affects our business.”
Gold prices for Feb 2012 delivery are down 0.60% this morning at $1,596.30.
Check out the price of gold today.