China to Approve Quotas for Bulk Gold Imports Into the Country

SEATTLE (Scrap Monster): The Chinese administration has granted permission to domestic and international banks to import bulk quantities of gold into the country. The move is positive news for the sector, as it is likely to support international gold prices, which have been on continuous decline over the past few months.

China, which has been a traditional gold buyer, witnessed huge drop in imports following the spread of Covid-19 pandemic and dip in local demand for the yellow metal. With the country’s economy rebounding sharply in H2 2020, the demand for gold jewellery, bars and coins too witnessed sharp recovery. The imports turned profitable as domestic prices surged above global benchmark rates. Incidentally, domestic gold prices are seen trading at a premium of between $7 and $9 per ounce, compared with international prices, thus indicating the strong demand for gold in the country.

The country is likely to import around 150 tonnes of gold over April and May this year, sources said.

China has not been issuing quotas for gold imports through commercial banks for a while. However, it plans to allocate quotas to allow shipment of gold into the country in huge quantities.

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