Singapore is reshaping the gold market map: Asia challenges London
Singapore is launching a large-scale program to become the main gold trading hub in Asia. Six of the world's largest banks have already supported the initiative, joining the creation of a new clearing system for physical gold stored on the island. This is a direct challenge not only to London and New York, but also to Hong Kong, which plans to launch its own clearing system as early as July.
On Monday, June 15, Deputy Prime Minister Gan Kim Yong presented a package of initiatives from the Singapore Exchange and the Monetary Authority of Singapore. The logic is simple: Asia accounts for 70% of global gold demand, but key prices are still set in the West. This is a systemic problem that Singapore intends to solve.
New infrastructure for Asian gold
The Singapore Exchange will open an over-the-counter (OTC) clearing system for physical gold stored in the country by the end of 2026. Participants include DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC, and UOB. Interbank trading will begin in 2027. In parallel, the Monetary Authority will provide gold storage services for foreign central banks starting in October, and will also remove the 5% limit on investments in physical precious metals for funds and family offices.
Until now, Asia has lacked its own developed infrastructure comparable to London's. This created an imbalance: during Asian trading hours, liquidity drops, making large transactions more difficult. The new system aims to act as a bridge, matching local demand with global liquidity during daytime hours.
Hong Kong is not idle
Singapore has an active competitor. Hong Kong plans to launch its own gold clearing system in July and resume trading in metal futures. The city has secured support from several banks and established connections with central banks.
Notably, one of the participants in the Singapore system, DBS, is preparing to issue tokenized physical gold for retail clients. Its competitor OCBC already buys, sells, and stores the precious metal for institutional investors in Singapore.
My analysis: The outcome of the race between Singapore and Hong Kong will depend not only on the speed of launch. Six major international banks supporting the Singapore system is a serious bid for commercial success. However, Hong Kong, with its deep ties to mainland China, also holds strong potential. In any case, we are witnessing a historic shift: the center of gravity of the global gold market is steadily moving to Asia.