WGC Published Latest China Gold Market Report

The demand for the yellow metal remained strong during the month.

SEATTLE (Scrap Monster): The Chinese gold market report published by the World Gold Council (WGC) suggests that local gold price premiums in China saw mild recovery during the month of January this year, thus putting an end to the declining trend seen since October 2022.

The gold prices kicked off to a strong start in 2023. The local gold prices as well as the LBMA gold price in dollars extended their upward movement from late-2022, rising by 2% and 5% respectively. The underperformance of RMB gold price, in comparison with its USD peer was mainly due to strength in local currency.

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The demand for the yellow metal remained strong during the month. During the half-month period from the CNY day to the Spring Lantern Festival, the consumption of gold in the country registered 18% year-on-year surge, said statistics published by the China Gold Association.

The Chinese gold ETF holdings recorded outflow of 4 tonnes during the initial month of the year. The holdings, at 48 tonnes, as at the end of January 2023, hit the lowest level since February 2020. The PBoC gold reserves rose by 15 tonnes during the month from end-2022 levels, recording the third monthly rise on the trot.

The ongoing recovery in economic activities is expected to keep gold demand at high levels in the near term, observed WGC.