The gold price has been rising this year, fuelled in part by geopolitical uncertainties.

Singapore’s UOB has signed a co-operation agreement with Shanghai Gold Exchange in Shanghai to develop the gold market as part of China’s “Belt and Road” trade strategy.

The institutions’ memorandum of understanding is a part of the bilateral cooperation initiatives agreed by the People’s Bank of China and Monetary Authority of Singapore. 

“As the only bank offering physical gold products in Singapore, coupled with our extensive ASEAN footprint, UOB is well positioned to connect our customers to gold markets both across the region and within China,” Wee Ee Cheong, deputy chairman and CEO of UOB, said in a statement earlier this week.

The pact comes as gold prices have been rising sharply this year, benefiting in recent weeks from its safe-haven status amid uncertainties ahead of the US presidential election and conflicts in the Middle East and Ukraine. China has also been a significant buyer of gold.

Since 19 November 2024, spot gold has risen from $1,981 per ounce to $2,774 on 28 October before retreating to around $2,593 as of Tuesday 12 November. (Source: BullionVault.)

“This year marks the 10th anniversary of SGE International Board. We will continually deepen internationalisation and implementing new business model. We will work together with UOB to further enhance the service system of International Board to better support high-level opening of China’s gold market as the financial infrastructure,” Yu Wenjian, chairman, SGE, said.

SGE was established in October 2002 by PBC upon approval by State Council. SGE, which is a financial infrastructure specialising in precious metals trading, says it has been the world's largest physical gold exchange for more than 10 consecutive years.