WGC Highlighted Chinese Gold Market Trends
The Chinese gold imports in the initial three-month period of the year stood higher than the corresponding period in previous two years.
SEATTLE (Scrap Monster): The World Gold Council (WGC) report on Chinese gold market trends in the month of April this year suggests that local demand for the yellow metal remained subdued in the country, amid ongoing Covid-19 restrictions.
The WGC observed that the Shanghai Gold Price Benchmark PM (SHAUPM) in RMB rose in April while the LBMA Gold Price AM in USD witnessed a slight decline. However, the strength in RMB gold price was not enough to prevent the Shanghai-London gold price spread from turning negative.
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The Chinese gold ETF holdings recorded an outflow of 3.3 tonnes in April this year. The holdings totalled 58.5 tonnes as at the end of the month. The local gold demand was impacted by lockdowns in major Chinese cities. Meantime, the gold withdrawals from the Shanghai Gold Exchange (SGE) during the month hit the lowest April level since 2012.
The Chinese gold imports in the initial three-month period of the year stood higher than the corresponding period in previous two years. The imports recorded decline in March. However, it remained strong in January and February, backed by robust local gold demand, the WGC noted.
The trade body expects Chinese gold consumption to remain weak in the short run. However, policies in support of economic growth should benefit gold consumption in the longer term.
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