- In August, Shanghai Gold Benchmark (PM) rose 11% to 355 yuan/gram and the local gold premium peaked at a six-year high.
- While Au(T+D)’s trading volume in August surged to a new all-time high, gold withdrawals from the Shanghai Gold Exchange (SGE) declined again last month.
- Gold imports dropped to 44t in July, the lowest since 2017.
- The People’s Bank of China (PBoC) added another 6t to its gold reserves in August.
August was a good month for Chinese gold prices. The Shanghai Gold Benchmark price (PM) and Au(T+D) both ended August with a 11% increase in price while the LBMA Gold Price (AM) rose 7%. Globally, falling interest rates and uncertainties continued to drive international gold prices up. Locally, USD/CNY depreciation to above 7 – an important psychological threshold – boosted yuan-denominated gold prices.