WGC: Chinese Gold Reserves Surged; Wholesale Demand Dropped

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) indicates that Chinese official gold reserves rose during the month of March this year. Meantime, the wholesale demand for gold witnessed decline.

According to Ray Jia, Research Head, China World Gold Council, the Chinese gold premium retreated in March 2024, in line with the reduced local demand for the yellow metal on account of soaring gold prices. However, the first quarter recorded the highest ever premium of $40 per ounce, driven by robust demand during the initial two months of the year.

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The Chinese gold ETFs added $164 million during the month, thus lifting the total assets under management (AUM) to a fresh record of $5 billion. The Q1 inflows totalled $386 million, WGC noted.

The Chinese central bank added 5 tonnes to its total gold holdings during the month. Gold now accounts for approximately 4.6% of the country’s total reserves. This is the seventeenth straight month that the People’s Bank of China has recorded gold purchases. The gold reserves were up by 27 tonnes in Q1 this year.

WGC reported strong dip in wholesale demand during the month, with 124 tonnes of gold leaving the Shanghai Gold Exchange (SGE). On the contrary, the overall Q1 wholesale demand for gold totalled 522 tonnes, the highest level since 2019.