UPDATE 1-Shanghai Gold Exchange to let foreign bourses use yuan price for gold derivatives

* Says to sign deal with Dubai commodity exchange next week

* Looking at similar deals with other exchanges (Adds quotes on deal with Dubai exchange, other plans)

SINGAPORE, Oct 17 (Reuters) - Shanghai Gold Exchange will collaborate with foreign exchanges and allow them to use its yuan-denominated gold price in developing derivatives products, its chairman said on Monday.

The platform, the world’s biggest physical bullion exchange, in April launched a yuan-denominated gold benchmark as part of China’s bid to exert more control over pricing of the metal and increase its influence in the global market.

The move is an aggressive step by China, the world’s top consumer, producer and importer of gold, to market its pricing mechanism and aims for a bigger say in an industry long dominated by London, where global spot prices are set.

“We would collaborate with various exchanges and authorise these external exchanges to start business outside China to use it as a basis for development of derivatives products,” Jiao Jinpu told an industry conference through an interpreter.

The first deal will be signed with the Dubai Gold & Commodities Exchange next week, he later told reporters, adding that he expects more cooperation ahead.

“Some of the exchanges are approaching us,” he said. “Collaboration is a win-win for all. In Latin America and Africa I wish to offer more collaboration with them.”

China has baulked at depending on a dollar price for gold in international transactions and believes its market weight should entitle it to set the price for the precious metal.

The Shanghai benchmark gold price is based on clearly defined rules and is transparent, traceable and auditable, backed by 12 price-setting institutions and six reference members, Jiao said.

The exchange has also set up 61 designated warehouses across 35 cities in China to expedite deliveries and other services.

“The world is looking at the East and we are looking at the future,” Jiao said, encouraging investors to participate in China’s growing gold market.

Spot gold has lost more than 7 percent since early August on growing expectations that the U.S. Federal Reserve will raise its interest rates in December. (Reporting by Manolo Serapio Jr. and Koustav Samanta; Editing by Himani Sarkar and Tom Hogue)