China begins move to deregulate gold

The People's Bank of China (PBOC), the country's central bank which has a monopoly on domestic gold trading, has taken the first step to deregulate the domestic gold market by reducing its authorised gold purchasing points in all provinces, industry sources said.

The move was expected to encourage some Chinese gold producers to sell more output directly to local end-users and reduce selling to the central bank, they said. Currently, the PBOC sets domestic selling and purchasing prices for gold