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.