Domestic gold price tracks the upward trend in international prices. Consumer demand stabilises but maintains strength; festive season momentum key. Premium of domestic gold prices over landed cost shrinks. The Reserve Bank of India (RBI) has added 50t to its gold reserves so far this year. Streak of fund inflows into Indian gold ETFs continues, with highest monthly inflows on record in August. Gold imports hit a new high in August
In August, China’s wholesale gold demand saw a seasonal m/m bounce. But it remains well below the long-term average amid the record level gold price and economic uncertainties. Meanwhile, Chinese gold ETFs saw their first monthly outflow since November 2023.
In this episode, hosts John Reade and Joe Cavatoni from the World Gold Council interview Marie Lemay, President and CEO, Royal Canadian Mint and Rob Sargent, Director Refinery Services, Royal Canadian Mint. Lemay discusses the role of the Royal Canadian Mint in the Canadian and broader gold industry and highlights several key initiatives and priorities for the Mint.
The reduction of gold’s import duty brought domestic gold prices lower 6% m/m, with y-t-d gains now at 10%. The lower import duty has also reportedly boosted consumer demand ahead of the festive season. In turn, strong demand pushed the domestic gold price to a premium relative to the landed price following five months of discounts. The Reserve Bank of India (RBI) continued with its consistent but measured approach to buying gold. Gold ETFs saw substantial inflows in July on the back of adjustments to the treatment of long-term capital gains. Gold imports also maintained their momentum in July.
In July, China’s wholesale gold demand remained weak and the local gold price premium trended down further. However, gold ETFs saw their eighth consecutive monthly inflows, pushing the total assets under management and holdings to record highs. And China’s official gold holdings remained unchanged.
Gold import duty was cut by more than half. Long-term capital gains tax on gold has been adjusted down and the holding period decreased. Profits on gold ETFs and mutual funds will no longer be taxed at the short-term capital gains rate if held for at least 12 months. Despite some potential short-term disruptions, we expect the combined effects of these changes to add at least 50t to gold demand in H2 2024.
In this episode, live from the IPMI Conference in Orlando, Florida, hosts John Reade and Joe Cavatoni from the World Gold Council interview Philip Newman, Founding Partner of Metals Focus, to discuss the intricacies of the global bar and coin market.
Global and domestic gold prices stay elevated, y-t-d gains at 16%. Jewellery demand subdued; investment demand dominant. Significant widening of discounts between domestic and international gold prices. The Reserve Bank of India (RBI) grows its gold reserves with its highest monthly purchase in nearly two years in June. Gold ETFs inflows sustain momentum in June. Steady trend in gold imports.
In June, China’s wholesale gold demand remained weak, ending H1 with little changes compared to 2023. Chinese gold ETFs saw their seventh consecutive monthly inflow, pushing both of their assets under management and holdings to record highs. Meanwhile, the People’s Bank of China reported no gold reserve changes.
Gold rose to a new all-time high in mid-May before pulling back, likely on profit taking, to close the month at US$2,343/oz. This delivered a 1% monthly increase, adding to gains in March (9%) and April (5%).
In May, China’s wholesale gold demand fell as gold jewellery consumption and bar and coin sales cooled. Meanwhile, the local central bank didn’t report any gold purchase during the month. But the bright spot came from the gold ETF market which extended the inflow streak to six months.
The rapid rise in the gold price during March raised several questions. One of these was whether central banks – whose demand has been posited as a key reason for the recent rally – would change their gold buying behaviour in response.
In this episode of "Unearthed," hosts Joe Cavatoni and John Reade speak with George Burns, President and Chief Executive Officer, Eldorado Gold, discussing critical minerals and the role of gold in our world.
