Daily Gold Market Report

Record $121 Per Troy Ounce Gap Between Shanghai Spot Price and London’s 
 China Imported 900 Tonnes of Gold So Far This Year, Highest In Five Years 
(USAGOLD – 9/18/2023) Gold and silver both posted modest gains yesterday after the open, with gold up $10 and silver 25 cents on the day.  Today, both open flat with gold currently trading at $1,934.40, up 56 cents and silver up 6 cents at $23.30.  As we await the Fed’s decision tomorrow, China’s central bank, the People’s Bank of China (PBOC), has lifted temporary curbs on gold imports that were initially imposed in August to support the renminbi (yuan), after gold prices reached record spreads of $121 per troy ounce between the Shanghai Exchange and the London Bullion Market Exchange. The spread subsequently narrowed to $76 after the PBOC relaxed import restrictions on gold.  In August, quotas for international gold imports by banks in China were reduced and halted to curb purchases intended to hedge against a weakening domestic currency, but unintentionally caused gold prices within the country to spike dramatically. The renminbi had been in a steady decline against the US dollar, reaching its lowest point in 16 years, prompting the central bank’s measures to try to stabilize the currency.
Source FT
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