The Chinese wholesale gold demand improved during the month.
SEATTLE (Scrap Monster): The World Gold Council (WGC) published its latest update on Chinese gold market.
According to the research, there was a spike in gold prices in the first month of this year. While the SHAUPM in RMB increased 5%, the LBMA gold price PM in USD climbed 8%. The strengthening of the local currency and fewer trading days owing to the Chinese New Year break were the primary causes of the RMB gold price's underperformance.
Throughout the month, the demand for gold at wholesale prices in China increased. The SGE transported out 125 tonnes of gold in total, a 3% increase from the previous month. Seasonal stock replenishment from banks, retail jewelers, and other market participants prior to the holidays caused the spike in demand.
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The study claims that during January 2025, the Chinese gold exchange-traded funds (ETFs) lost $399 million, or 4.7 tonnes, in holdings. By the end of the month, the total stocks had dropped to 110 tons. Profit-taking actions before to the holidays were the primary cause of the outflow.
WGC anticipates that demand for bars and coins will continue to be strong in the future. However, sales of gold jewelry may be impacted by the rapidly rising price of gold. Additionally, according to the WGC research, the demand for wholesale gold may be relatively steady in the near future before slowing down in the second quarter of 2025.
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