WGC: Wholesale Gold Demand in China Posted Notable Surge

SEATTLE (Scrap Monster): The World Gold Council (WGC) released Chinese gold market report for the month of January this year.

According to the report, the wholesale gold demand in the country stood at 271 tonnes, recording the strongest January in history. The replenishment of gold stocks by retailers ahead of the Chinese New Year boosted the demand. The 2024 new year holiday gold consumption is expected to record strong year-on-year growth, noted Ray Jia, Senior Analyst, WGC-China.

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The local gold price in RMB remained stable during the month. The RMB gold price outperformed its USD peer in January 2024. The Chinese local gold prices outpaced equities and commodities.

The People Bank of China (PBoC) added 10 tonnes of gold to its reserves, thus lifting the total holdings to 2,245 tonnes. The central bank reported 15^th straight month of purchases in January this year.

The Chinese gold ETFs attracted $113 million during the month, lifting the total assets under management (AUM) to $4 billion. The Chinese gold ETF AUM rose to an all-time high, WGC report said.

The net gold imports by the country totalled 1,420 tonnes in 2023, reporting a jump by 10%. However, the imports witnessed notable decline in December 2023, weighed by continued declines in local gold price premiums.