Daily Gold Market Report

Gold Investment in China:
TA March 2024 Overview of Premiums, Demand, and Central Bank Activity

(USAGOLD – 4/17/2024) Gold prices are higher this morning. Federal Reserve Chairman Jerome Powell in remarks on Tuesday suggested interest rates may have to remain higher for longer, to get inflation back down to a level where the Fed feels more comfortable. Gold is trading at $2392.96, up $10.06. Silver is trading at $28.69, up 58 cents. In March 2024, Ray Jia of the World Gold Council reports China’s gold market witnessed several significant developments. The Shanghai Gold Benchmark PM (SHAUPM) in RMB experienced a 10% increase, and the LBMA Gold AM Price in USD rose by 8%, with gold prices reaching record highs due to factors like strong global investment demand and geopolitical risks. Despite a slight dip in wholesale demand, the first quarter saw the highest Q1 wholesale gold demand since 2019, totaling 522t. The People’s Bank of China (PBoC) continued its gold purchasing streak for the 17th consecutive month, adding 5t to its reserves, which now stand at 2,262t. Additionally, Chinese gold ETFs saw significant inflows, pushing total assets under management to a new high of RMB35bn (US$5bn). There was a retreat in China’s gold price premium in March, reflecting weakened local demand amidst rising gold prices, although the first quarter overall recorded the highest Q1 premium ever due to strong physical demand in the initial months.