Singapore Bullion Market Association

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KIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA GOLD HUB

By KALLANISH INDEX SERVICES

Situated at the crossroads of Asia, Singapore has been rapidly establishing itself as a leading gold trading hub in Asia over the past decade. With its stable political environment, transparent regulatory framework and world-class financial ecosystem, coupled with solid logistical infrastructure, Singapore possesses all the key strategic advantages that make it an ideal hub for the precious metals industry.
To further solidify Singapore’s development as Asia’s gold trading hub, only a few additional ingredients are needed. Crucially, the regional market has lacked a US dollar price discovery mechanism for gold during Asian business hours. As a result, most gold market participants have no option but to reference the LBMA’s gold benchmark price, which is issued at the end of the business day in Asia.
With the support of the Singapore Bullion Market Association (SBMA), Kallanish Index Services (KIS) is playing a crucial role in facilitating price discovery and market transparency during the trading day in Asia. KIS works closely with market participants that are directly involved in gold bullion spot market trading to compile and publish average daily premiums and discounts of specified kilobar products (see table) for both bids and offers relative to London spot price at 12:00 midday Singapore time. KIS employs a data-driven methodology that fully complies with IOSCO principles and the EU benchmark regulations.
Product: Freshly minted (virgin) kilobar and Recirculated kilobar
Quality: 0.9999 purity from credited refineries on LBMA Good Delivery List
Pricing Points: Investor/wholesale prices loco Singapore, loco Hong Kong and loco Bangkok, delivered to Brinks, Malca or Loomis vaults
Quantity: 25 kg
Timestamp: 12:00 midday Singapore time; Publication at 12:30 pm Singapore time
Currency units: US$/troy oz (to 2 decimal places)
The graph shows how KIS premiums for loco Singapore and Bangkok remained relatively comparable and flat during the first 16 weeks of 2024, ranging from US$0.87/oz to US$1.10/oz*. In contrast, premiums for loco Hong Kong during the same period exhibited greater volatility, fluctuating from US$1.38/oz to US$3.27/oz, attributable to both local demand factors and exports to China.

KIS Asia Gold Premiums and Gold Spot Price (US$/oz)

SBMA Crucible-30-KIS
Source: KIS Gold Repor
Unusually, premiums for loco Hong Kong remained elevated after the Chinese New Year festival, a period typically associated with higih gold demand, extending into March before easing. This surge in premiums appears to be driven by increased demand from China, despite record highs in the Shanghai gold price. Factors like a weakened yuan, slumping property market, and stock market sell-offs likely prompted both retail and institutional investors towards gold as a safe haven for risk mitigation.
Meanwhile, Shanghai gold premiums over spot during this period exhibited significant volatility, ranging from a discount of US$10.39/oz to a premium of US$86.65/oz.
As with every price discovery process, the more market participants submit data, the more accurately the reference prices compiled reflect real-world transaction prices. KIS therefore invites all companies involved in buying or selling gold kilobars in Asia to apply to join its Data Provider network. Your involvement will enhance market transparency and support informed decision-making across the industry. Your price submissions will be treated with the strictest confidentiality, and in return, you will receive a complimentary subscription to the daily KIS Gold Service.
* KIS gold price premiums reflect the mid-point of the average bid and ask premiums over spot reported by market participants for each location.
SBMA Crucible-30-KIS
SBMA Crucible-30-KIS

About Kallanish Index Services (KIS):

A subsidiary of Kallanish Ltd, KIS specialises in compiling price indices for commodity markets using a rigorous, data-driven methodology. KIS is independent and impartial, and works closely with market participants to compile the price indices and other essential industry data they need for business success. KIS provides subscribers daily market prices, data and insights for the gold and hydrogen sectors. KIS brings together a dynamic team of analysts based around the world, led by Steven Randall, a founder and former head of The Steel Index. Find out more at www.kallindex.com.