Chinese Gold Market: Wholesale Demand Dipped in October
Gold | 2023-11-17 11:14:46
The local gold price premium dipped from its peak, mainly on account of weaker demand for the yellow metal during the month.
By Paul Ploumis
SEATTLE (Scrap Monster): The Chinese gold market report for the month of October published by the World Gold Council (WGC) indicates that wholesale demand of gold weakened during the month. Also, gold reserves by the country recorded increase, amidst surging local prices.
According to Ray Jia, Senior Analyst, China World Gold Council, the Shanghai Gold Benchmark PM (SHAUPM) in RMB recorded strongest monthly gains since March this year. The gold withdrawal from the Shanghai Gold Exchange (SGE) totalled 121 tonnes in October this year. The withdrawals were down by 48 tonnes when compared with the prior month, but higher by 23 tonnes upon comparison with the same month a year before.
The local gold price premium dipped from its peak, mainly on account of weaker demand for the yellow metal during the month. The net holdings in Chinese gold ETFs held steady at 60 tonnes, while the total assets under management (AUM) surged to hit USD 4 billion, due to strong local gold prices.
The Chinese central bank added 23 tonnes to its total reserves, thus making the total reserves to 2,215 tonnes. This is the twelfth consecutive month of gold purchases by the People’s Bank of China (PBoC).
Looking ahead, the elevated prices may keep the consumption of gold subdued during the period towards the end of the year.
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