Goldhub blog: Posts from July 2019

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Ray Jia
Research Manager
World Gold Council

The advancements in China’s gold buy-back market

Recycled gold is an important source of gold supply . In 2018, the volume of recycled gold reached 1,168t, accounting for over 25% of total supply globally. Recycled gold is also an important source of supply in China, amounting to 146t, or 20% of domestic supply in 2018. Recently, China’s recycled gold market has experienced some exciting developments which could improve the efficiency and transparency of the industry. 

Mukesh Kumar
Market Intelligence Group
World Gold Council

Higher domestic price and monsoon dents Indian gold demand in June

Summary

  • Indian gold imports were 62t in June 2019 – up slightly on the same month last year 
  • The domestic gold price was 6.1% higher in June as compared to end of May
  • With higher domestic gold prices, the local discount in the gold market reached $23/oz (1.6% to the international price) by end of June
  • Higher and relatively volatile prices encouraged gold futures trading on MCX: volumes touched a high of 28.2t in June 
Isabelle Strauss-Kahn
Former Lead Financial Officer
The World Bank

Central banks return to gold

Intro: Central banks bought more gold in 2018 than at any time since the early 1970s – and the trend has continued this year. Isabelle Strauss-Kahn, Member of the Advisory Board of the World Gold Council, former Director of Market Operations at the Banque de France and former Lead Financial Officer at the World Bank, explains why.

John Reade
Chief Market Strategist
World Gold Council

2019 Central Bank Gold Reserves Survey signals more buying to come

Our Central Banks and Public Policy team have just published the results of the 2019 Central Bank Gold Reserves Survey. The survey gives a fascinating insight into the minds of central bankers and is especially timely since central banks continue to post record-breaking levs of net gold purchases in recent quarters.

Ray Jia
Research Manager
World Gold Council

Shanghai Gold Benchmark price hit record high in June

Summary

  • Shanghai Gold Benchmark price hit 319.2 yuan/gram – highest level since its introduction in April 2016
  • Au(T+D)’s trading volume in June reached second highest level on record – 2,062t
  • The local gold premium rose sharply 
  • Imports continued to slide in May, dropping to 69t
  • Gold withdrawals from Shanghai Gold Exchange (SGE) fell again last month 
  • PBOC added a further 10t to its reserves in June
Mukesh Kumar
Market Intelligence Group
World Gold Council

India’s gold import duties rise

Summary

  • On 6th July, India’s gold import duty increased from 10% to 12.5% as part of a revenue-raising budget
  • We believe it will have a negligible long-term effect on gold demand
  • We think it may be a temporary measure: when the government’s books are in better shape we may see some of these tax increases rolled back
  • The market will be supported by other government initiatives, including the structural reforms such as the India Gold Spot Exchange and plans to boost rural incomes