Goldhub blog

Loading content...

Mukesh Kumar
Market Intelligence Group
World Gold Council

Dhanteras fails to boost gold sales in October

Summary

  • Indian gold imports were 38.3t in October 2019 – 15% lower than the same month last year
  • The domestic gold price rose by 3.1% during October, ending the month 22.4% higher than the end of 2018
  • With the festival of Dhanteras in October and onset of wedding season in November, the discount in the local market narrowed to US$3/oz by end of October from a discount of US$29.5/oz at end of September
  • Late withdrawal of the monsoon, with heavy rainfall in several states of India, damaged the kharif crops and more than 60% of kharif crops traded below the minimum support price (MSP) in October due to high moisture content and little progress in procurement of crops from government.
Dr Lu Zhengwei
Chief Economist of China Industrial Bank, Chief Economist of Huafu Securities and Vice Chairman of China Industrial Bank Research Limited

Currency crises, over-leverage and low rates – potential drivers of a gold bull market

The gold price has risen more than 15% this year against a backdrop of falling interest rates, economic uncertainty and geopolitical tensions. Dr Lu Zhengwei, Chief Economist of China Industrial Bank, Chief Economist of Huafu Securities and Vice Chairman of China Industrial Bank Research Limited, looks back in time to forecast the future for gold.

Krishan Gopaul
Market Intelligence Group
World Gold Council

Central bank demand remains healthy but showing signs of slowing

Our latest central bank data is now available on Goldhub and makes for interesting reading. Looking at the latest statistics on gold, monthly increases (of a tonne or greater) in gold reserves have begun to ease over the past three months. In October, reported net purchases totalled a healthy 41.8t, but this was 16% lower than September (49.6t), which itself was 16% lower than August (59t).
Ray Jia
Research Manager
World Gold Council

China’s gold market soft in October

  • The Shanghai Gold Benchmark price fell slightly in October as the appreciating USDCNY offset the rise in US dollar-denominated gold price. This pushed the local gold price to a discount, the first in 12 months
  • Impacted by the weak performances of CNY-denominated gold prices, speculative demand dropped further. Trading volume of Au9999 continued its decline during the month on weaker physical gold demand
  • During the first ten months of 2019, China’s gold imports dropped by 41% y-o-y
  • Three new gold-backed ETFs were approved in October, raising the total number of gold-backed ETF products in China to seven
  • The People’s Bank of China (PBoC) didn’t purchase any gold in October, leaving its gold reserves at 1,948t.
Louise Street
Market Intelligence
World Gold Council

Retail gold insights 2019

Today we’ve published our Retail gold insights 2019 report, a thematic analysis of our new consumer research survey. With a base of 18,000 participants across India, China, Russia, Germany, the US and Canada, we believe it is the largest ever consumer survey on the global gold market.

Video: Discussing the Responsible Gold Mining Principles at Evolve 2019

Last month, we launched the Responsible Gold Mining Principles (RGMPs), a new framework that sets out clear expectations for consumers, investors and the downstream gold supply chain as to what constitutes responsible gold mining. In this video, Gary Goldberg, at the time CEO of NewmontGoldcorp, Mick Wilkes, CEO of OceanaGold and I discuss why we developed the RGMPs, investor expectations around ESG and expectations as to how the mining industry will evolve over the next 5 to 10 years.

Alistair Hewitt
Head of Market Intelligence
World Gold Council

Gold: thriving on lower interest rates

It’s old news that the world economy is suffering. Ongoing trade tensions between the US China (and elsewhere too), the draining Brexit saga, as well as a myriad of other geopolitical uncertainties, have taken their toll. Global growth is slowing, and investors are downbeat on world economic prospects. Recession in many major economies is now a real possibility... As a result, central banks around the world have been busy cutting rates.

Ray Jia
Research Manager
World Gold Council

Chinese gold ETFs’ AUM reached all-time high in September while physical demand remains soft

  • The Shanghai Gold Benchmark price saw a modest decline in September, with the local gold premium falling sharply due to the stabilising currency and increasing gold imports.
  • Led by the declining gold price and the soft physical demand, both Au(T+D) and Au9999’s trading volume dropped last month while loadouts from the Shanghai Gold Exchange (SGE) levelled off.
  • After hitting the lowest level since 2017 in July, gold imports to China rebounded in August.
  • The People’s Bank of China (PBoC) added another 6t to its gold reserves in September. After ten consecutive purchases, the PBoC now holds 1,948t gold in its reserves.
Mukesh Kumar
Market Intelligence Group
World Gold Council

Gold demand in India continues its downward trajectory in September

  • Indian gold imports reached just 26.3t in September 2019 – 61% lower than the same month last year.
  • The domestic gold price was 2.4% lower in September compared to August, but 18.7% higher y-t-d.
  • With weak physical demand, the discount in the local gold market reached a peak of US$55/oz in September, but narrowed to US$29.5/oz by the end of the month.
  • Monsoon levels in 2019 are the highest for 25 years; Kharif sowing almost flat y-o-y.

Takeaways from the Responsible Asset Owners Global Symposium

Last week, I was delighted to be asked to speak at the inaugural Responsible Asset Owners Global Symposium in London . More and more investors are – quite rightly – thinking about how to incorporate environmental, social and governance (ESG) factors into their investment choices. But there is still a lot of uncertainty about what this means, and in particular, what framework investors should use to assess ESG performance