Singapore Takes On London: Gold’s New Power Shift Emerges as Prices Rally

Asia consumes 70% of the world’s gold, yet London and New York have long set the price. Singapore is now moving to break that stranglehold. The Singapore Exchange, alongside the Monetary Authority of Singapore, is rolling out an ambitious package of measures designed to establish the city?state as a physical gold trading hub. By the end of 2026, a bespoke over?the?counter clearing system for physical gold will go live, backed by six global banks including JPMorgan, Deutsche Bank and ICBC Standard Bank. The move fills a strategic gap in Asia’s gold infrastructure – and it comes as Hong Kong launches a similar system as early as July.

The assault on London’s monopoly goes beyond clearing. From October 2026, the MAS will offer vault services tailored to foreign central banks, allowing them to store bullion reserves directly in Singapore. Private money is also being courted: the government has scrapped the previous 5% investment limit on physical precious metals in tax?advantaged funds, giving family offices far more room to allocate to gold.

That structural shift is unfolding against a backdrop of resurgent gold prices. On Monday the metal jumped 2.86% to $4,361 per ounce by one widely followed benchmark, while another measuring method recorded a 2.5% gain to $4,329. The rally snaps weeks of correction and comes just ahead of a critical Federal Reserve meeting. A diplomatic framework agreement between the US and Iran has weighed on the dollar, with the Dollar Index slipping to 99.55. A weaker greenback makes dollar?denominated gold cheaper for international buyers and has helped the metal break away from its recent lows, though it remains well below the record high of around $5,626 set in January.

Should investors sell immediately? Or is it worth buying Gold?

Beneath the surface, central banks continue to hoard gold at a record clip. Net purchases hit 244 tonnes in the first quarter, the fastest pace in over a year. China’s central bank has now bought gold for 18 consecutive months. Private investors in emerging markets are piling in too: Indian gold ETFs attracted roughly $3.7 billion in the first quarter – nearly six times the sum a year earlier – and wealthy individuals and retail investors now hold 42% of those fund assets, using the metal as a hedge against economic volatility.

All eyes are now on the Fed. On Tuesday and Wednesday, Kevin Warsh will chair his first Federal Open Market Committee meeting since taking office at the end of May. Markets expect the central bank to hold rates steady, as US inflation stood stubbornly at 4.2% in May. The real focus is the updated dot?plot release on June 17. If Warsh’s first interest?rate projections lean dovish, the current uptrend in gold could accelerate. If they signal a restrictive stance, the recovery may prove short?lived.

On the year gold is already up nearly 28%. The combination of geopolitical easing, robust physical demand from Asia, and a potential shift in Fed rhetoric gives the metal plenty of catalysts. Yet the outcome of the dot?plot will likely determine whether this rally has legs – or whether Singapore’s long?term gambit will be tested by short?term monetary headwinds.

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