Chinese Wholesale Gold Demand Weakened in November

SEATTLE (Scrap Monster): The Chinese gold market report for the month of November published by the World Gold Council (WGC) indicates that the wholesale gold demand weakened during the month.

According to the report, the local gold price premium in the country pulled back during the month. The divergence between the local and dollar gold prices widened further, with LBMA Gold Price AM in USD surging higher by 7.4%, as compared with comparatively weaker increase of 3.6% to the SHAUPM in RMB.

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The gold withdrawals from the SGE totalled 115t, higher by 17t from the previous month, but down significantly by 43t over the previous year. The November withdrawals hit the lowest level since 2013.

The Chinese gold ETFs recorded net outflow of 1.8t during the month. The total holdings now stand at 50.5t, said WGC. The surge in local gold prices led to investors taking profit on their holdings, thus resulting in net outflows during the month.

The country’s gold reserves stood at 1980t as at end-November this year. It accounted for approximately 3.4% of the total foreign exchange reserves. The gold reserves recorded a surge by 32t over the prior month. The PBoC reported surge in gold reserves after a period of 38 months.

Meantime, Chinese gold imports fell during October this year to total 146t, lower by 6t from the prior month.