The London morning gold price (LBMA) in dollar terms and the Shanghai afternoon benchmark gold price (SHAUPM) in yuan terms rose 0.2% and 0.7%, respectively, with the latter gaining more because of the yuan’s depreciation against the dollar.
Affected by the easing of domestic supply and demand, the average Shanghai-London gold premium narrowed sharply; under the influence of rising gold prices and seasonal factors, the gold outbound volume of the Shanghai Gold Exchange (SGE) was 120 tons, a decrease of 37 tons from the previous month. Ton.
The total assets under management (AUM) of China’s gold ETFs decreased slightly by approximately US$33 million (230 million yuan) to US$3.2 billion (22 billion yuan), while holdings decreased by 0.5 tons to 50 tons.
China’s official gold reserves further increased by 8 tons to 2,076 tons, increasing gold reserves for the sixth consecutive month. Gold currently accounts for 3.9% of China’s total foreign exchange reserves.
According to the latest news from China Customs, China imported 178 tons of gold in March, and the total imports in the first quarter reached 442 tons, the strongest performance in the first quarter since 2015.
future outlook
During the period from April 29th to May 3rd, the revenue of tourism and other service industries achieved explosive year-on-year growth; at the same time, the domestic gold, silver and jewelry retail industry also showed vitality, with a substantial year-on-year increase of 23%.
However, this momentum may not continue forever; according to upstream gold manufacturers, under the double influence of rising gold prices and expectations of a low season in the second quarter, retailers tend to be more cautious about replenishing goods after the festival.
Average gold price hits record high in April
Gold prices rose modestly in April. The World Gold Council also pointed out in the “Gold Monthly Review” that among the many drivers of gold prices, falling government bond yields and a weaker dollar were partially offset by cooling potential energy. Even so, average gold prices rose to record highs in U.S. dollars and renminbi, respectively, in April.
