- Chinese gold prices rose modestly in July
- Au(T+D)’s trading volume in July extended its June surge
- The local gold premium saw a much lower volatility
- Imports registered another decline, dropping to 55t in July, the lowest since 2017
- Gold withdrawals from Shanghai Gold Exchange (SGE) experienced the first rise in four months
- The People’s Bank of China (PBoC) added another 10t to its gold reserves
The Chinese gold price gradually rose in July. The price of the Au(T+D) contract gained 1.5% during the month, while the Shanghai Gold Benchmark price (PM) rose 1.3% – hitting a record high on 19th July. While geopolitical concerns and easing monetary policies expectations remained supportive, a stronger US dollar in July exerted pressure.
China’s economic performance in July continued to remain weak: growth in key indicators such as retail sales and fixed asset investment decelerated further. And inflation again rose above expectation – the fourth time this year. Investor worries over the slowing Chinese economy continued to support local gold price in July.