WGC China Reported Elevated Gold Premiums in February 2024

SEATTLE (Scrap Monster): The Chinese Gold Market Report published by the World Gold Council (WGC) suggests that local gold price premiums continued at elevated levels during the month of February this year, supported by robust gold demand and supply shortages.

According to Ray Jia, Research Head, China World Gold Council, the Shanghai Gold Benchmark PM (SHAUPM) in local currency stood essentially unchanged in February this year. This is upon comparison with the LBMA Gold Price AM in USD, which recorded slight decline by 0.3%. Meantime, the gold prices reached new record highs during early-March 2024, the report said.

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The Chinese gold-backed exchange traded funds (ETFs) witnessed third straight month of inflows, thus taking the total assets under management (AUM) to a new record high of $4.3 billion.

The Chinese official gold reserves witnessed an addition of 12 tonnes in February 2024, pushing the total gold reserves to 2,257 tonnes. This is the sixteenth consecutive month of rise in country’s gold reserves.

The WGC report predicts month-on-month rebound in wholesale gold demand in the country in the near term. However, the rally in gold prices may result in lower local gold consumption over the coming months.