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Chinese gold demand falls in April

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(Kitco News) - China has been dealing with a resurgence of COVID-19 infections in some of the major cities. Unfortunately, this has hit physical demand as local stores closed. In general, as well as the gold price has been dealing with a rise in yields

The WGC reported that Chinese gold ETF holdings totaled 58.5t (US$3.5bn) at the end of April, following a 3.3t (US$323mn) outflow in the month. This could have been due to possible profit-taking activities as the local gold price rose. Another theory is that investors were unwinding positions ahead of the five-day Labour Day Holiday (30 April – 3 May) to avoid potential volatilities while local markets were closed.

Gold withdrawals from the Shanghai Gold Exchange (SGE) last month were the lowest in April since 2012. Despite a decline in March, China’s gold imports in the first quarter were significantly higher than either 2021 or 2020 thanks to strong local gold consumption during the first two months of 2022.

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