Premiums on physical gold in China hit a near five-month peak this week on strong retail demand in the top consumer.
Chinese dealers charged premiums of $20-$35 an ounce XAU-CN-PREM over global spot prices, versus $15-$22 last week.
“We’re moving towards the peak season for Chinese buying and there are reports of good coin and bar demand in Shanghai, plus excellent jewellery sales in Hong Kong,” said independent analyst Ross Norman.
Global spot prices were trading around $1,930 per ounce, bound for an about 1.4% weekly decline.
“China’s gold demand is expected to improve in the second half of the year due to stimulus policies aimed at boosting consumption,” said Bernard Sin, regional director, Greater China at MKS PAMP.
The China Gold Association said consumption rose more than 16% year-on-year in the first half of 2023.
Hong Kong premiums were little changed at $0.5-$2.5.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
