Singapore seeks to add "golden" shine to its status as a financial center.

Despite the recent drop in gold prices this year amidst market volatility, Singapore is betting that gold trading demand will continue and hopes to get a larger share of the pie. The Monetary Authority of Singapore and its precious metals industry association are exploring ways to strengthen the city-state's gold trading ecosystem. The Monetary Authority of Singapore and the Singapore Bullion Market Association stated on Friday that a joint group will explore new methods to meet the growing interest of investors in storing and trading gold in Singapore. Potential options include developing gold-related capital market products, establishing internationally aligned standards for storage and logistics, and creating a clearing system to support over-the-counter settlement of gold bars traded in Singapore. The Monetary Authority of Singapore also mentioned considering providing storage services for foreign central banks and sovereign entities. The group will be jointly led by the Monetary Authority of Singapore and the Singapore Bullion Market Association, with members from the private sector including stakeholders from lending institutions DBS Bank, ICBC Standard Bank, J.P. Morgan, UBS, and OCBC Bank, exchange operator Singapore Exchange Group, and the World Gold Council.