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Shanghai gold exchange to allow physical gold as collateral

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Gold discounts in India, the world's second-biggest consumer, widened this week as dealers struggled to offload stocks amid sluggish demand.

[BEIJING] China's Shanghai Gold Exchange said it will allow physical gold to be used as collateral on futures contracts from Sept 29, according to a statement posted on its website on Thursday.

Physical gold will be permitted to be used for up to 80 per cent of margin value, according to the statement.


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