Chinese Gold Market: Local Gold Price Premium Dipped in April

SEATTLE (Scrap Monster): According to the World Gold Council (WGC), the local gold price premium registered sharp decline during the month of April this year, amidst easing local supply and demand conditions. The LBMA Gold Price AM in USD surged 2% during the month, whereas the Shanghai Gold Benchmark PM (SHAUPM) in RMB recorded marginal gain by 2%.

Nearly 120 tonnes of gold left the Shanghai Gold Exchange during April this year, significantly lower by 37 tonnes when compared with the prior month. The total gold ETF holding fell marginally by 0.5 tonnes to 50 tonnes. Meantime, the assets under management (AUM) of Chinese gold ETFs registered nominal decline by $33 million to $3.2 billion.

The country’s gold reserves rose by 8 tonnes in April to 2,076 tonnes. This is the sixth consecutive month of increase. The yellow metal now accounts for 3.9% of the total Chinese reserves.

China imported 178 tonnes of gold in March this year, thus making the total quarterly imports stand at 422 tonnes in Q1 this year. This is the largest Q1 imports of gold by the country since 2015, WGC report noted.

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