WGC Market Report: Gold Futures Volume at SHFE Rose in August

The Chinese gold ETFs witnessed the first monthly outflow since November last year.

SEATTLE (Scrap Monster):  According to the World Gold Council's (WGC) China Gold Market Report, the average volume of gold futures traded at the Shanghai Futures Exchange (SHFE) in August of this year was 227 tonnes, a minor increase over the previous month. This level has been the highest, since April of this year.

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According to the world gold trade body, the gold withdrawals from the Shanghai Gold Exchange (SGE) amounted to 102 tonnes in August 2024, higher by 17% from the prior month. On the other hand, the withdrawals witnessed a 37% decline, compared with the corresponding quarter a year before.

The Chinese gold ETFs witnessed the first monthly outflow since November last year. The outflows totaled around $292 million. The collective holdings saw a decrease of 3.6 tonnes to about 90 tonnes during the month, while the overall assets under management (AUM) decreased by 3% to $7.3 billion, according to the WGC report.

Looking ahead, gold consumption in the country is expected to remain muted, mainly due to the sluggish economic backdrop and the rangebound and record-level gold price. The investment demand for gold will remain largely dependent on gold price. It must be noted that gold prices had extended their strength in August.

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