China Gold Market Update: A Seasonal Demand Rebound In March

World Gold Council1.28K FollowersFollow5ShareSavePlay(7min)CommentsSummaryGold ended Q1 with a weak March; both the LBMA Gold Price PM in USD and the Shanghai Gold Benchmark Price PM (SHAUPM) in RMB pulled back, trimming Q1 gains.Gold’s price recovery at the end of March extended into April with global investors adding gold back into their portfolios.Wholesale demand in March rebounded seasonally by 57% m/m to 134t, pushing the Q1 total 3% higher y/y to 345t, with strong investment buying offsetting weakness in the jewellery sector.Chinese gold ETFs continued to expand in the month, ending Q1 with record inflows of RMB59bn (US$8.5bn); total assets under management (AUM) soared 26% to RMB304bn (US$44bn) and holdings rose 50t to 298t.The People’s Bank of China (PBoC) reported its 17th consecutive gold purchase in March, lifting its gold holdings 5t to 2,313t; 9% of total foreign reserves. China’s official gold holdings rose by 7t in Q1. style-photography/iStock via Getty Images Looking ahead Q2 is the traditional off-season for jewellery consumption but a boost may come should the gold price stabilise. Investment demand strength may gain support from declining bond yields and the lack of other localThis article was written byWorld Gold Council1.28K 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.