China Gold Market: Wholesale Demand Weakened in July

SEATTLE (Scrap Monster): The World Gold Council (WGC), in its latest report, noted that wholesale demand for gold in Chinese market continued to remain weak during the month of July this year. However, inflows into Chinese exchange traded funds (ETFs) sustained during the month.

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According to the report, the wholesale demand was badly impacted, due to ongoing weakness in gold jewellery consumption and physical investment. The gold industry recorded withdrawal of 89 tonnes of gold from the Shanghai Gold Exchange (SGE) during July 2024, WGC said.

The inflows into the Chinese ETFs continued to remain strong, with addition of $108 million. The regional ETFs reported eighth consecutive month of inflows in July. The collective holdings touched a new record of 94 tonnes. The assets under management (AUM) totalled $7.3 billion at the end of the month. Going forward, the gold ETF demand is expected to last, while investors in bars and coins are likely to wait until confirmation of uptrend in gold prices.

There were no gold purchases during the month, thus leaving the total official gold holdings unchanged at 2,264 tonnes. The gold holdings accounted for 4.9% of the country’s total foreign reserves.