WGC: Chinese Gold Demand, Premium Surged in 2023

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) indicates that Chinese gold demand recorded surge during 2023. Also, gold premiums rose when compared with the year before.

According to the report, the Chinese economic recovery remained muted during the year. As a result, the consumer spending and investments were moderate. Although all of the major local assets recorded negative returns, the Shanghai Gold Benchmark Price PM (SHAUPM) in RMB recorded notable surge by 17%.

The Chinese gold exchange traded funds (ETFs) saw addition of $654 million during the previous year, with the total asset under management (AUM) rising to touch the highest-ever level of $4 billion. The gold ETF holdings increased by 10 tonnes to total 62 tonnes.

Also, the country’s central bank continued its gold purchases in 2023, adding 225 tonnes. The central bank gold reserves totalled 2,235 tonnes at the end of the year. Gold currently accounts for nearly 4.3% of the country’s total official foreign exchange reserves, WGC report said.

The gold production by the country remained stable. This coupled with robust demand and declining imports lifted the local gold price premium to record highs in 2023.

The gold withdrawals from the Shanghai Gold Exchange (SGE) totalled 1,687 tonnes in 2023. This was significantly higher by 7% over the previous year and higher by 3% than the five-year average withdrawals.