WGC Unveiled Latest Report on Chinese Gold Market

SEATTLE (Scrap Monster): The World Gold Council (WGC) published report on Chinese gold market during the month of June this year. The wholesale gold demand remained weak in the country, amidst continued ETF flows.

According to Ray Jia, Research Head, China World Council, the gold withdrawals from the Shanghai Gold Exchange (SGE) totalled 86 tonnes in June, rising marginally by 5% and falling significantly by 31%, suggesting further weakness in gold demand. The cumulative gold withdrawals totalled 822 tonnes in the initial six-month period of the year. The dip in jewellery consumption was offset by strong bar and coin sales, the report noted.

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The gold-backed exchange traded funds (ETFs) reported seventh consecutive month of inflow in June. The assets under management (AUM) hit the highest level of $7 billion. During the first six-month period of the current year, the Chinese gold ETFs attracted nearly $2.3 billion.

Meantime, the gold reserves at the People’s Bank of China (PBoC) remained unchanged in June, for the second month in a row. The gold holdings amounted to 2,264 tonnes, accounting for 4.9% of the total reserves.

Looking ahead, the elevated gold price may continue to exert pressure. The WGC kept its expectations unchanged for gold jewellery consumption and investment demand.