WGC China Gold Market Update: Official Reserves Rose in July
The total AUM registered a slight month-on-month decline of 1%.
SEATTLE (Scrap Monster): The China gold market report published by the World Gold Council (WGC) noted that official gold holdings recorded jump during the month of July this year.
In July, gold prices stayed the same. Last month, there were slight gains in both the Shanghai Benchmark Gold Price PM (SHAUPM) in RMB and the LBMA Gold Price PM in USD. While the SHAUPM in RMB increased by 0.5%, the LBMA Gold Price PM in USD increased by 0.3% month over month. The price of RMB gold has increased by more than 22% so far this year, outpacing the majority of local assets.
This year's July showed a modest seasonal month-over-month recovery in the 93-ton gold withdrawals from the Shanghai Gold Exchange (SGE). But according to the WGC study, the withdrawals were below the long-term average, suggesting a decline in the demand for wholesale gold, particularly from the jewelry industry.
Chinese gold ETFs saw withdrawals in July, primarily due to an improvement in investors' risk tolerance. A total of $325 million was spent throughout the month. The overall AUM showed a minor 1% monthly decrease.
The country's official gold holdings rose by 2 tonnes for the ninth consecutive month, according to the WGC report. According to the most recent data available, Chinese gold imports nearly halved in June, down 45% month over month. At 323 tons, the nation's H1 gold imports fell 62%.
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