WGC: Chinese Wholesale Gold Demand Dipped in August
The tonnage demand remained lower, primarily on account of persistent sky-high gold prices.
SEATTLE (Scrap Monster): The World Gold Council (WGC) published latest China Gold Market Report, which states that wholesale gold demand in the country recorded decline during the month of August this year.
A number of variables, such as increased inflation forecasts, growing prospects of a Fed rate decrease, the dollar's prolonged weakness, and ongoing geopolitical and trade worries, helped gold prices record additional increases throughout the month. While the SHAUPM in RMB increased 2%, the LBMA Gold Price PM in USD increased 3.9%.
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In August, the demand for gold at wholesale prices in China declined. At 85 tonnes, the demand decreased by 9 tonnes from the previous month. In contrast, demand fell more precipitously by 17% in August of last year. Due mostly to the ongoing extremely high price of gold, the demand for tons remained reduced.
The nation's gold-backed exchange-traded funds (ETFs) saw withdrawals for yet another month. To 189 tonnes, the holdings decreased by 7.7 tonnes. According to WGC, the total assets under management (AUM) of the Chinese ETF were valued at US$21 billion, representing a 2% decrease from the previous month.
For the tenth consecutive month, the People's Bank of China (PBoC) increased its gold holdings by 1.9 tonnes in August.
Despite a recent slowdown, WGC anticipates that China's investment demand for gold would increase in the future.