SEATTLE (Scrap Monster): The China gold market review for the month of June this year, published by the World Gold Council (WGC), suggests continued rebound in local gold price spread during the month. The wholesale gold demand recorded notable improvement, said Ray Jia, Senior Analyst, China World Gold Council.
The shifting inflation expectations and interest rate hikes in key markets weighed on gold, thus resulting in further weakness in prices. The Shanghai Gold Price Benchmark PM (SHAUPM) in RMB recorded a decline by 1.3% in June, whereas LBMA Gold Price AM in USD fell by 2.2%. The RMB gold price recorded relatively stronger performance than its USD peer during the first six months of the year.
The Chinese local gold premium continued to surge in June to average at $3.4 per Oz. The wholesalers’ physical gold demand too recorded marked improvement, in line with the anticipated jump in local gold consumption. The average Shanghai-London gold price spread recorded month-on-month rise by $3 per Oz.
The Chinese gold ETF witnessed marginal inflow of 0.3 tonnes in June. The initial half of the current year recorded net outflows totalling 18.3 tonnes, with bulk of those outflows happening during Q1. Meantime, the total gold ETF holdings held more or less flat at 57 tonnes in June 2022.
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