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China raises prices of gold sold to processors

SHANGHAI: China's central bank has raised prices of gold sold to processors by 5.54 yuan ($0.669) per gram due to rises in world gold prices, the official Wenhui Daily reported on Wednesday.

The People's Bank of China will sell 99.99 percent pure gold to processors for 84.44 yuan per gram against the previous 78.9 yuan, the newspaper said.

Gold of 99.90 percent purity was now priced at 83.64 yuan per gram against the former 78.10 yuan, it said.

"The raises reflect a 10 percent rise in gold prices on world markets since the start of this year," the newspaper said.

Central bank officials declined to comment.

China keeps tight controls on gold with the central bank the only body authorised to decide on its circulation. The government has signalled it would free circulation to some extent but has not given a timetable.-Reuters