SEATTLE (Scrap Monster): The World Gold Council (WGC) published its latest report that provides a review of the Chinese gold market during the previous year.
According to the report, the Shanghai Gold Benchmark Price in local currency rebounded during the month of December 2020 with a sizable gain. However, it remained at discount to US Dollar LBMA Gold Price, when measured in the same currency.
Also, the country’s wholesale physical gold demand remained weaker than 2019, despite economic recovery since Q1 last year. The gold withdrawals from the SGE were 27% higher month-on-month in December. Also, Au(T+D)’s trading volumes of 821t during the month was 17% lower over the previous month. Incidentally, the local gold demand had witnessed significant contraction during the initial quarter of 2020, shocked by Covid-19 pandemic.
The RMB gold price recorded a jump by 14.6%, whereas the USD gold prices skyrocketed by 24.2% in 2020.
The Chinese gold ETFs recorded outflow of 3.5 tonnes in December last year, mainly driven by strong equity market performance and an appreciating RMB. The Chinese gold ETF holdings added 16.1 tonnes during the year to end 2020 at 60.9 tonnes. Upon comparison with end-2019 holdings, they were up by 38%. A total of 7 new gold ETF products were listed last year, lifting the total available products in the Chinese market to 11.