- Both the LBMA Gold Price AM in US dollars (USD) and the Shanghai Gold Benchmark Price PM (SHAUPM) in renminbi (RMB) witnessed slight declines during the first month of 20211
- China’s economy continued to show signs of stabilisation in January
- Local investor interests in Au(T+D) and gold ETFs diminished:
- Au(T+D) trading volumes were 11% lower m-o-m and 30% lower y-o-y
- Total gold holdings under Chinese gold-backed ETFs decreased by 1.5t in the month
- Gold withdrawals from the Shanghai Gold Exchange (SGE) levelled off at 159t last month – compared to 162t in December – as gold sales remained buoyant ahead of the Chinese New Year (CNY) holiday.
- The monthly average Shanghai-London gold price spread turned positive for the first time in 11 months, averaging US$1.1/oz2
- The People’s Bank of China gold reserves remained at 1,948t at the end of January, accounting for 3.5% of its total reserves. The Chinese central bank has kept its gold reserves unchanged since September 2019.
Gold prices fell slightly in January
In general, the appreciating US dollar, strong equity markets around the globe, and rising US Treasury yields weighed on gold prices during the month. While the LBMA Gold Price AM in USD declined by 1.8%, the SHAUPM in RMB saw a relatively narrower price decrease of 0.9% in January.