Precious Metals/China's Gold Market in April

摘要

Gold price touched 113.15yuan per gram in early April before drifting around 111.00 yuan per gram for one week and then falling down slightly tracing the international gold market. On April 15, the USA published the CPI (Consumer Price Index) for March that caused large withdrawal of international funds. Au (T+5), Au99.95 and Au99.99 in Shanghai Gold Exchange (SGE) began to drop by 1.32 percent, 1 percent and 1.33 percent over the previous day, respectively and then fluctuated in the range 106-109yuan per gram. However, the domestic gold prices will remain higher than the international prices back up by the strong demand with the upcoming Labor's Day holiday. By April 27, the ceiling closing prices for Au99.95, Au99.99 and Au (T+5) were 113.05yuan per gram, 113.15yuan per gram and 113.03yuan per gram on April 2, respectively. While the lowest closing prices were 105.98yuan per gram, 105.98yuan per gram and 106.14yuan per gram on April 22. The total turnover of the three products accumulated to 22.72 tonnes with a total value of 2.1828 billion yuan. Considering the retreat of gold prices and the increasing demand, the turnover is expected to grow again.