Chinese buyers step in as gold hits lows

There have been some winners as the gold price has fallen towards the $1700/oz area. Consumers in China have been taking advantage of lower prices as the price of the yellow metal has fallen 17.64% since March. This represents an opportunity for both wholesale and commercial purchases in the nation which is the world’s largest gold consumer.

Away from this, the nation is still in the midst of the COVID-19 resurgence. This means that things could get better long-term as the festival season kicks off and retail buyers come back to the market. A representative from the flagship store of China Gold Group in Beijing said the number of consumers asking about gold bars had nearly doubled and sale volumes were up 20 percent.

Data from World Gold Council (WGC) noted that gold withdrawals from the Shanghai Gold Exchange reached 140 tons in June, a 37 tons improvement from May and 7 tons higher year-on-year. This represents a decent increase.

In addition to this, representatives of gold stores in Beijing said the gold price has been adjusted seven times since June due to the international gold price decline, according to a CCTV report.