Gold 8217 s future 8216 shifting east 8217

Gold's future could be shifting towards the east after plans for a massive new refinery in Dubai were released.

A $60 million (£35.4 million) refinery is being built by Kaloti Precious Metals in Dubai. It is believed this will be part of a plan put together by the Dubai Gold and Commodities Exchange to introduce a spot gold contract this June.

Tarek El-Mdaka, chief executive of Kaloti Precious Metals, told Reuters that Dubai is becoming increasingly important for the gold market.

He said: "The refinery is part of the next stage, making Dubai a top centre for physical gold refining and clearing."

Last month saw the value of gold take a sharp fall, coincidentally on the anniversary of the crash in the price of the precious metal in 2013. The price of gold dropped by 2.7 per cent on April 15th, reminding investors of the same day 12 months previously when a 15 per cent fall in the value of the commodity spooked global markets.

Figures from the Dubai Multi Commodities Centre show around 40 per cent of the world's physical gold trade passed through Dubai last year.

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