WGC: Gold Remained the Top Performing RMB Asset in 2024

SEATTLE (Scrap Monster): The World Gold Council (WGC) published new report on Chinese gold market during the month of May this year. The prices of the yellow metal continued to edge higher in May. Gold remained the top performing RMB asset in 2024, said the report.

The gold industry witnessed withdrawal of 82 tonnes from the Shanghai Gold Exchange (SGE), significantly lower when compared on a month-on-month and year-on-year basis. The gold jewellery demand remained tepid, whereas the bar and coin investment too cooled off. The Shanghai Futures Exchange witnessed deceleration in gold trading activities during the previous month, WGC noted.

The Chinese gold ETFs added RMB 1.8 billion in May. The total assets under management (AUM) edged higher to hit record high. This is the sixth consecutive month of inflows into ETFs. The collective holdings totalled 87 tonnes at the end of the previous month.

The People’s Bank of China (PBoC) did not purchase gold in May this year. The nil gold purchases came after 18 straight months of gold purchases. The country’s total gold holdings currently stand at 2,246 tonnes, accounting for approximately 4.9% of its total reserves, the report said.

WGC report stated that the wholesale gold demand in China is unlikely to pick up until mid-to-late Q3 this year.