SEATTLE (Scrap Monster): The World Gold Council (WGC) published a new report that analyses Chinese gold market during the month of July this year.
According to Ray Jia, Senior Analyst, China World Gold Council, dip in gold prices provided a short-term boost for local gold demand in the country. The sustained recovery is possible only after notable economic recovery and income growth, more weddings and fewer disruptions from COVID-19 pandemic. Although gold prices experienced weakness during the month, local gold price premium kept rebounding, the report noted.
As of end-July this year, the holdings in Chinese gold ETFs stood at 66 tonnes. The exchange traded funds recorded inflows of 9 tonnes during the month. In fact, the Chinese gold ETFs witnessed largest inflow since April 2020.
The wholesale physical gold demand continued to improve, registering the strongest July since 2015. The lower gold prices along with improved economic activities supported the wholesale demand growth for the yellow metal.
The country imported 107 tonnes of gold in June this year, recording the highest import level in five months. The imports surged higher by 81 tonnes over the prior month, suggesting strong rebound in local gold demand, following easing of pandemic-related restrictions, the report said.
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