China Gold Market Update: Resilient Demand In A Festive Month

World Gold Council1.24K FollowersFollow5ShareSavePlay(6min)CommentsSummaryGold took different directions in February: the LBMA Gold Price PM in USD kept rising while the Shanghai Gold Benchmark Price PM in RMB fell, due mainly to a stronger local currency.Wholesale demand showed some resilience during the Spring Festival month, falling modestly by 5t y/y to 85t, likely supported by the industry’s pre-holiday restocking and robust investment demand.Chinese gold ETFs added RMB4.5bn (US$640mn) in February; holdings rose 4t to 290t while assets under management fell 1% to RMB331bn (US$48bn), impacted by the local gold price decline.China’s gold reserves have expanded for 16 months in a row and rose a further 1t in February to 2,309t; gold now represents 10% of China’s total foreign exchange reserves.The gold jewellery sector may experience some seasonal weaknesses in the month ahead, which could be dampened further if gold price rises. Just_Super/iStock via Getty Images Gold’s diverging price trends from west to east Gold prices diverged in February (Chart 1). The LBMA Gold Price PM in USD rose 4.8%, supported by factors such as heightened geopolitical risks and lower USThis article was written byWorld Gold Council1.24K FollowersFollowThe World Gold Council is the market development organization for the gold industry. Our purpose is to stimulate and sustain demand for gold, provide industry leadership, and be the global authority on the gold market. We are a unique organization that delivers tangible benefits to the gold industry. We are an active force within the market, working with a large and diverse set of partners to create access, drive innovation and stimulate demand, while providing a collective voice for our members. We provide insights into the international gold markets, helping people to understand the investment qualities of gold and its role in meeting the social and environmental needs of society. For more information visit www.gold.org.